The federal government has cleared a major hurdle before the arrival of the International Monetary Fund (IMF) mission by lifting restrictions on the commercial import of old vehicles. This decision fulfills one of the IMF’s key conditions, which had set a September 30 deadline for reforms in the auto sector.
Officials confirmed that under the new policy, the import of vehicles up to five years old will now be allowed until June 30, 2026. Importers will pay 40 percent additional tax compared to new cars, along with customs duty, additional customs duty, and regulatory duty.
From July 1, 2026, the age limit on imported vehicles will be completely removed. At the same time, duties on old vehicles will be gradually reduced by 10 percent every year until the fiscal year 2029-30.
The move comes through an amendment to the Import Policy Order 2022. Previously, only specific categories such as ambulances, armored vans, bulletproof cars, security vehicles, and firefighting trucks could be imported under this framework.
Now, with the revised rules, commercial imports of old vehicles are open, but all cars will have to meet environmental and safety standards.
Analysts say the policy shift could reshape Pakistan’s auto market by increasing competition and giving consumers more affordable options, while also helping the government meet IMF conditions for economic reforms.
