ISLAMABAD – The Economic Coordination Committee (ECC) of the Cabinet has approved the commercial import of vehicles not older than five years until 30th June 2026.
The decision was made during an ECC meeting chaired virtually by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, from New York.
The committee decided to amend the relevant provisions of the Import Policy Order, 2022, to allow the commercial import of used vehicles. Initially, only vehicles not older than five years will be permitted. After 30th June 2026, the vehicle age limit will be removed.
The ECC also directed that commercial imports must comply with strict environmental and safety standards to ensure sustainability and public safety.
Additionally, the committee approved the imposition of a 40 percent Regulatory Duty (RD) on used vehicles under five years old. This duty will be in addition to existing customs duties and will remain effective until 30th June 2026.
After this period, the RD will gradually decrease by 10 percentage points per year, eventually reaching zero by the fiscal year 2029-30, following recommendations from the Tariff Policy Board.
The meeting included several key government officials, such as Federal Minister for Petroleum Ali Pervaiz Malik, Federal Minister for National Food Security and Research Rana Tanveer Hussain, Federal Minister for Power Sardar Awais Ahmad Khan Leghari, federal secretaries, and senior officials from concerned ministries and regulatory bodies.
Experts say the ECC decision aims to boost the auto sector, encourage regulated imports, and generate revenue while ensuring environmental and safety standards are maintained.
The move is expected to benefit importers, dealers, and consumers by providing access to relatively new vehicles, while gradually phasing out duties to encourage market stability in the long term.
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