Government Plans Major Shift In Pakistan’s Used Car Import Policy

The Pakistani automobile industry is once again in the spotlight as the government considers introducing a new framework for used imported cars. This change could significantly impact overseas Pakistanis, car buyers, and local dealers, making it one of the most discussed topics in the automotive sector today.

What’s Changing In The Used Car Import System

According to updates from the Ministry of Commerce, the government is planning to combine the personal baggage and gift schemes for overseas Pakistanis under a new five-year commercial import policy. This revised policy is expected to take effect from October 1, 2025.

Key points under discussion include:

• Five-year-old imported cars may face an initial 40 percent additional duty.
• The duty rate could gradually decrease by 10 percent every year.
• The transfer of residence scheme will stay separate and unaffected.
• Final decisions are yet to be made, but the direction indicates a major policy shift.

Why This Matters For Pakistan’s Automotive Market

This decision holds importance for several reasons. Pakistan’s used car market has always been highly active, with overseas Pakistanis playing a vital role in supplying affordable options to local buyers. A sudden increase in duties may:

• Affect car affordability for middle-class buyers.
• Impact the availability of popular Japanese imported cars in Pakistan.
• Put additional pressure on the already struggling local automobile industry.
• Increase foreign exchange concerns if not managed effectively.

Concerns Raised By Importers And Lawmakers

During recent discussions in the National Assembly Standing Committee on Commerce:

• Committee members requested detailed insights on the effect of used car and electric vehicle imports on Pakistan’s economy.
• Importers suggested that the Engineering Development Board (EDB) should not oversee the process, as it mainly relates to the Ministry of Commerce.
• They demanded a review of the proposed 40 percent duty and recommended forming a joint working group with government officials to draft a more practical policy.

However, the Ministry of Commerce clarified that broader auto industry issues fall under the Ministry of Industries, which adds another layer of complexity to the matter.

What This Means For Pakistani Car Buyers

If the proposed policy moves forward, Pakistani car buyers should prepare for changes in:

• Car Prices – Imported cars may initially become more expensive.
• Variety Of Options – The availability of five-year-old Japanese and other used cars may reduce.
• Local Market Competition – Local automakers might benefit from reduced import competition.
• EV Imports – Policies around electric vehicles remain under review, and changes could directly impact EV adoption in Pakistan.

Final Thoughts

The coming months will be critical in shaping how Pakistan’s car import system evolves. Whether the new policy creates opportunities or challenges depends on how well the government balances affordability, foreign exchange concerns, and local industry growth.

At Car Advisers, we are closely following this development to keep Pakistani car enthusiasts and buyers updated with the latest news, expert opinions, and market analysis.

Have thoughts on this proposed policy? Share your views in the comments below, and let us know how you think it will impact Pakistan’s automotive industry.