The Ministry of Commerce has officially approved the commercial import of used vehicles, which will now be processed exclusively through banks. Officials confirmed that a 40 percent regulatory duty will be imposed on such imports, and the Federal Board of Revenue (FBR) is expected to issue the formal notification shortly.
The Engineering Development Board (EDB) has also introduced strict standards for the commercial import of used vehicles. Only vehicles with international certification will be allowed entry into Pakistan. Authorities added that rules for monthly depreciation or reduction in the assessed value of old vehicles will be announced soon to ensure compliance with international norms.
This policy change comes amid broader discussions between Pakistan and the International Monetary Fund (IMF). During the second review of Pakistan’s ongoing loan program, talks focused on revenue shortfalls, pending tax litigation, and fiscal reforms. The IMF was briefed on missed tax collection targets and urged Pakistani authorities to expedite court cases involving the FBR, particularly regarding super tax disputes.
Officials indicated that the FBR anticipates recovering nearly Rs200 billion if favorable rulings are issued. However, estimated tax losses of around Rs60 billion due to recent floods were also highlighted. The IMF pressed for measures to broaden the tax base, while the FBR requested leniency in revenue targets.
Authorities stressed that the commercial import of used vehicles will now follow a transparent, regulated framework, combining banking oversight and international standards. The government expects this move to boost legal imports, increase tax compliance, and protect consumers from substandard vehicles.
In addition to boosting the automotive sector, officials said the move would strengthen regulatory oversight, prevent smuggling, and align Pakistan’s vehicle import policies with global best practices.
With these reforms, the government aims to ensure safe, certified vehicle imports while supporting revenue collection and industrial growth.
In other news read more about: ECC Allows Import of Used Cars Up to 5 Years Old Until 2026
