The government of Pakistan is planning big changes to how used cars are imported into the country. Starting from October 1, 2025, a new five-year commercial import policy for used cars may be introduced.
Currently, overseas Pakistanis can bring used cars through personal baggage or gift schemes. The government is now thinking about combining these two schemes with the new policy. However, the Transfer of Residence scheme will stay separate.
This information was shared by Commerce Secretary Jawad Paul during a meeting with the National Assembly Standing Committee on Commerce.
He also said that five-year-old used cars brought under the new policy will have to pay an extra 40% duty in the first year. This duty will decrease by 10% each year after that.
Committee members Usama Ahmed Mela and Gul Asghar Khan asked for more details about the impact of used and electric car imports on the country’s foreign exchange reserves.
A group of used car importers, led by Hassan Danji, gave their suggestions. They said that the Engineering Development Board (EDB) should not handle the commercial import process, as it is the job of the Ministry of Commerce. They also requested a reduction in the 40% duty and suggested forming a working group of importers and officials to improve the policy.
However, Secretary Commerce said that car industry matters fall under the Ministry of Industries, and his team is already managing many responsibilities.
Standing Committee Chairman Jawed Hanif Khan agreed with this and decided to forward the matter to the National Assembly Standing Committee on Industries and Production, along with some suggestions.
