ISLAMABAD – Car importers and buyers, rejoice! The International Monetary Fund (IMF) has given its approval for a significant overhaul of Pakistan’s vehicle import policy. From September 2025, used car import up to five years old will be permitted.
This news was presented in a Senate Standing Committee on Finance meeting, where representatives from the Ministry of Commerce outlined the future changes. They informed that a 40% additional duty will be imposed on these imported cars.
Importation of only three-year-old used cars was possible, but this limit has now been removed. The government is contemplating even greater flexibility in the future.
By FY 2027, Pakistan will also permit the import of vehicles aged seven years. Concurrently, the additional duty will begin to reduce by 10% every year.
From FY 2027 onwards, this additional duty will be fully eliminated, and the regular customs duty will be the only duty applicable to the imported vehicles.
It’s also worth mentioning that cars brought in on the baggage scheme will not be subject to the 40% surcharge duty. But there is a catch: the individual importing the vehicle has to have spent a minimum of 700 days abroad.
The new import policy is hoped to give advantages to overseas Pakistanis and domestic car purchasers who desire cheaper vehicle alternatives.
