Pakistan Opens Doors To Five-Year-Old Used Car Imports

Pakistan’s automotive sector is entering a new phase as the government has approved the commercial import of five-year-old used cars, subject to an additional 40% duty. The policy is part of Pakistan’s economic commitments and will gradually open the door for wider vehicle imports over the next two years.

Starting from fiscal year 2025–26, restrictions on used vehicle imports will be lifted in phases. Cars up to five years old will be allowed first, and by July 2026, the age limit will be removed entirely, provided vehicles meet safety and environmental standards.

Concerns From The Local Auto Industry

Pakistan’s leading automakers have raised strong concerns about this decision. With the local industry representing over $5 billion in investment and providing jobs to 1.5 million people, manufacturers fear the move could weaken domestic production.

They argue that no strong auto-producing country allows unrestricted used vehicle imports, and such a decision could derail Pakistan’s efforts to grow local manufacturing under the “Made in Pakistan” agenda.

Global Compliance And Risks

The used car trade is also under global monitoring due to risks of money laundering and other financial crimes. International watchdogs have urged Pakistan to establish a transparent regulatory framework. Countries such as Australia and New Zealand have adopted strict inspection and certification systems before allowing foreign used vehicles into their markets — a model Pakistan may need to follow.

Impact On Car Buyers In Pakistan

For consumers, this decision could mean:

More options in the used car market, particularly imported Japanese models known for quality and fuel efficiency.
Higher upfront costs, as the 40% duty will increase final prices.
Greater scrutiny on documentation, safety standards, and environmental compliance.

While this policy might help buyers access a broader range of vehicles, it also risks flooding the market with used imports, which could affect car prices in Pakistan and local manufacturing.

Industry Calls For Protection

Local automakers are urging the government to consider:

Protective measures to support domestic production.
Tax reforms that discourage import of older, environmentally harmful cars.
A clear policy framework ensuring only safe and certified vehicles are imported.

Without these safeguards, industry leaders fear long-term consequences for Pakistan’s already struggling auto sector.

Car Advisers’ Take

At Car Advisers—Pakistan’s Largest Automobile Platform, we believe this decision could reshape the used car landscape in Pakistan. Buyers will gain more choice, but risks remain if policies are not implemented carefully.

Car Advisers continues to support car buyers and sellers with trusted services, including:

Sell My Car, Buy Me a Car, Auction My Car
Car inspections & auction sheet verification
Armored vehicles (buy, sell, rent)
EV charging stations and workshops directory

This evolving policy highlights why it’s more important than ever to rely on verified platforms like caradvisers.com, where authenticity, trust, and expert insights come first.

Conclusion

The government’s move to allow five-year-old used car imports is a turning point for Pakistan’s auto market. Whether this benefits buyers without harming local production will depend on how effectively regulations are enforced.

What do you think? Will this new import policy give buyers better options or hurt local manufacturing? Share your thoughts in the comments below and follow Car Advisers Blog for the latest updates on car prices, new launches, and auto industry news in Pakistan.