Pakistani consumers may soon have access to a wider range of vehicle options as the federal government considers allowing the import of used Cars up to five years old.
The proposal was discussed during a meeting of the National Assembly Standing Committee on Finance and Revenue while lawmakers reviewed measures linked to the Finance Bill 2026. Officials believe the move could increase competition in the automobile sector and provide buyers with more affordable choices.
For many years, Pakistan’s auto market has faced criticism over high vehicle prices, limited options, and long delivery periods. These challenges often led to additional charges such as “Own Money” on new vehicles, increasing the financial burden on consumers.
According to officials, the proposed policy change would represent a major shift from the current framework governing vehicle imports. If approved, buyers would be able to import used Cars that are up to five years old, instead of being restricted by existing rules.
Commerce Secretary Jawad Paul briefed the committee on the proposed reforms under the National Tariff Policy. He explained that the government aims to improve market efficiency and expand consumer choice through a more competitive environment.
Officials believe the plan could benefit consumers looking for newer imported vehicles equipped with modern safety features and advanced technology. Greater availability of imported Cars may also encourage local manufacturers to improve quality and pricing.
The proposal is part of a broader tariff reform agenda. Under the government’s roadmap, the regulatory duty on imported used vehicles could be reduced from 40 percent to 30 percent. This reduction may help lower the overall cost of imported vehicles.
Committee Chairman Syed Naveed Qamar observed that Pakistan’s automobile industry has received extensive protection over the years. He suggested that increased competition could help improve market conditions and reduce prices for consumers.
Authorities also plan to introduce equal safety requirements for locally assembled vehicles. The government intends to enforce the same 62 safety standards that currently apply to imported vehicles.
In addition, policymakers are considering wider reforms under the National Tariff Policy. These include gradually eliminating Additional Customs Duty (ACD), reducing regulatory duties, and eventually capping customs duties at 15 percent.
However, the proposal still faces challenges. Discussions continue within the government regarding implementation, while concerns have also been raised by the International Monetary Fund (IMF). Officials acknowledge that the reforms could reduce government revenue in the short term.
In other news read more about: Islamabad Introduces New Token Tax for 1000cc and Above Vehicles
With the current auto policy set to expire on June 30, policymakers are under pressure to finalize a new framework. If approved, the proposal could significantly reshape Pakistan’s automobile market by giving consumers access to a broader selection of imported vehicles and increasing competition across the industry.
