Govt to Remove Age Limit on Commercial Used Car Imports
The government of Pakistan is planning to remove the current five-year age restriction on commercial imports of used cars under the upcoming National Tariff Policy 2026-27. This important change was revealed during a briefing to the National Assembly Standing Committee on Finance by officials from the Ministry of Commerce.
The proposed policy adjustment will allow for a more flexible import framework, specifically targeting commercial imports of used vehicles. However, it will not apply to individual imports, such as those under the Gift or Transfer of Residence schemes, where the five-year age limit remains intact.
In addition to removing the age cap, the government plans to reduce the additional Regulatory Duty (RD) on used car imports from the current rate of 40% to 30% for the fiscal year 2026-27. The RD is set to decrease by 10% annually thereafter, reaching zero within three years, which is expected to encourage more commercial used car imports in the country.
To address safety and environmental concerns, the government intends to assign pre-shipment inspections to selected Japanese firms for all commercially imported used vehicles. This measure aims to ensure that imported cars meet quality and environmental standards before entering the Pakistani market.
If implemented, these policy changes could significantly increase the availability of imported used cars, fostering stronger competition in the automotive sector. This could benefit consumers by providing more options and potentially lower prices compared to locally assembled vehicles.
These revisions are part of the National Tariff Policy 2026-27, which is still subject to approval and finalization by the government authorities.