Islamabad: The federal government is considering a major relaxation in Pakistan’s vehicle import policy by allowing the import of used cars up to five years old, a move that could increase competition, expand consumer choice, and help reduce vehicle prices.
The proposal was discussed during a meeting of the National Assembly Standing Committee on Finance and Revenue, where officials outlined a broader plan to reform tariffs and reduce trade barriers.
According to Beyond Time News, Federal Secretary Commerce Jawad Paul told lawmakers that the government is reviewing restrictions on used vehicle imports as part of the National Tariff Policy.
Used Car Import Rules May Be Relaxed
If approved, the proposal would remove one of the key barriers facing vehicle importers and consumers.
The government believes greater access to imported vehicles could create stronger competition in the local automobile market.
Officials say the goal is to improve consumer welfare, increase market efficiency, and provide buyers with more affordable options.
The proposal has been welcomed by many used car traders who have long demanded easier import rules.
Duty on Imported Vehicles Could Be Reduced
The government is also considering reducing the regulatory duty on imported used vehicles.
According to the briefing, the duty could be cut from 40 percent to 30 percent.
A reduction in duties would lower import costs and may help bring down vehicle prices.
Consumers could benefit from a wider range of vehicles, including newer models with modern features and improved fuel efficiency.
Wider Tariff Reforms Planned
The proposal forms part of a broader tariff reform strategy.
Officials informed the committee that Additional Customs Duty (ACD) would be phased out over the next five years.
At the same time, regulatory duties would gradually be reduced.
The government also plans to cap customs duties at 15 percent and limit regulatory duties to a maximum of 20 percent.
Smaller regulatory duty slabs are expected to be abolished to simplify the tariff system.
According to officials, these reforms will make Pakistan’s trade framework more transparent and competitive.
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Competition Could Benefit Car Buyers
Committee Chairman Syed Naveed Qamar said Pakistan’s automobile industry has enjoyed significant protection for many years.
He noted that greater competition could benefit consumers by improving quality and reducing prices.
Market analysts believe increased imports could encourage local manufacturers to become more competitive and responsive to consumer demand.
Buyers may also gain access to a larger variety of vehicles than currently available in the domestic market.
Equal Safety Standards Proposed
The government is also planning to enforce the same safety standards on locally manufactured vehicles that currently apply to imported vehicles.
Jawad Paul told lawmakers that 62 safety standards would be implemented across the industry.
The move is expected to improve vehicle quality and strengthen consumer protection.
Govt Seeks to Stop Misuse of Import Schemes
Officials also highlighted concerns about misuse of vehicle import facilities in the past.
According to the commerce secretary, some individuals used the names and passports of overseas Pakistanis to import vehicles under baggage schemes.
The government is now reviewing safeguards to prevent abuse and ensure transparency.
Major Shift for Auto Sector
If approved, the proposed reforms would represent one of the most significant changes to Pakistan’s automobile import policy in recent years.
Supporters believe the measures could increase competition, improve affordability, and expand consumer choice.
However, local manufacturers may face stronger competition as imported vehicles become more accessible.
The proposals are still under consideration, but they signal the government’s intention to create a more open and competitive automobile market.
FAQs
Is Pakistan allowing five-year-old used car imports?
The government is considering the proposal, but a final decision has not yet been announced.
Will imported cars become cheaper?
They could become more affordable if the proposed reduction in regulatory duties is approved.
Why is the government considering this change?
The aim is to improve competition, increase consumer choice, and support market efficiency.
Will local car manufacturers be affected?
Greater imports could increase competition and encourage improvements in quality and pricing.
What other reforms are being planned?
The government is reviewing tariffs, customs duties, and vehicle safety regulations as part of a broader trade reform strategy.
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