Govt removes age limit on used car imports as automakers raise concerns

The Commerce Ministry has confirmed that commercial imports of used vehicles no longer face the five-year age cap from July 1, 2026. In an October 30 memorandum to the Federal Board of Revenue, it said the restriction ended after June 30, following a request for clarification from the tax authority. Imports remain subject to the Import Policy Order and environmental and safety requirements set by the Engineering Development Board.

The Pakistan Automotive Manufacturers Association has asked the government to tighten checks on personal import schemes, saying the Gift Scheme was used for 2,238 vehicles in September and represented about 98% of used vehicle imports that month. PAMA also cited domestic industry investment above Rs1 trillion and raised concerns about tariff reductions and depreciation allowances of up to 60% for imported used vehicles. It supports genuine facilitation for overseas Pakistanis but wants safeguards against commercial trading through personal schemes.