Pakistan permits imports of used cars in order to comply with IMF requirements.

By permitting the commercial import of used automobiles right away, the federal government has met a significant need prior to the arrival of the International Monetary Fund (IMF) mission.

The IMF had given this sector till September 30 to remove all restrictions.

Five-year-old cars will initially be allowed to be imported until June 30, 2026, officials stated. In addition to customs charge, additional customs duty, and regulatory duty, importers will be subject to a 40 percent tax increase compared to new cars.

The age restriction on imported cars will be eliminated completely after July 1, 2026. After that, the duty on older cars will be progressively lowered by 10% annually until FY 2029–2030.

Standards and policy changes

The Import Policy Order 2022, which previously permitted just a few types of outdated automobiles, including security vehicles, firefighting trucks, ambulances, armoured vans, and bulletproof cars, has been amended to reflect the decision.

Commercial imports of older automobiles are now permitted under the updated framework, but they must adhere to safety and environmental regulations.