Government Lifts 5-Year Cap on Used Car Imports

Government Lifts 5-Year Cap on Used Car Imports

BySobia Sultan

In a significant policy revision, Pakistan’s federal government has done away with the longstanding five-year age restriction on the commercial importation of used vehicles. This change will take effect from July 1, 2026, as confirmed by the Ministry of Commerce.

End of Age Restriction on Used Vehicle Imports

Previously, regulations limited the import of used vehicles classified under PCT headings 8702, 8703, 8704, and 8711 to those less than five years old. Imports also had to satisfy stringent environmental and safety benchmarks stipulated by the Ministry of Industries and Production and the Engineering Development Board (EDB). However, a recent directive issued on October 30, 2026, and communicated to the Federal Board of Revenue (FBR), officially removes this age cap. The decision comes after approval from both the Economic Coordination Committee (ECC) and the Federal Cabinet, signaling a shift towards more flexible import policies.

Continuing Import Criteria and Market Implications

While the age limit has been lifted, the government emphasized that importers must still adhere to all other existing requirements and standards. These include compliance with environmental and safety regulations, ensuring that imported vehicles meet quality benchmarks regardless of their age. The move coincides with an observable surge in used vehicle imports, which rose from just 48 units in May 2026 to 2,276 units by September of the same year. In parallel, the government imposed a 40% duty on commercial used vehicle imports, a figure set to decrease by 10 percentage points annually up to the fiscal year 2030.

What This Means for Pakistani Consumers and the Auto Industry

The removal of the age limit on used vehicle imports could have widespread effects on Pakistan’s automotive market. It may provide consumers with a broader range of affordable vehicle options, potentially making car ownership more accessible. This is especially relevant in a country where the demand for automobiles continues to grow amid economic constraints. On the other hand, the government’s continuous regulation on safety and environmental standards ensures that quality is not compromised as older vehicles enter the market. For the local auto industry and policymakers, this development necessitates careful monitoring of market dynamics to balance consumer needs with environmental and safety considerations.

A senior official at the Ministry of Commerce described the change as a “strategic adjustment to support market demand while maintaining regulatory standards.” As Pakistan’s automotive import landscape evolves, this decision marks a pivotal moment in aligning trade policy with consumer and industry trends.

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