The Tariff Policy Board (TPB), headed by Commerce Minister Jam Kamal Khan, has approved the commercial import of used vehicles up to five years old, with an additional 40% duty, according to a report by Business Recorder citing ministry sources.
The proposal is now set to be forwarded to the Economic Coordination Committee (ECC) for its final endorsement.
The decision was made despite opposition from Pakistan’s auto industry, which cautioned that allowing commercial imports could negatively impact domestic production, threaten employment, and trigger scrutiny under FATF regulations related to money laundering and counter-terrorism financing.
The TPB, which includes members from the Ministries of Commerce, Industries and Production, Finance, and the Federal Board of Revenue, reviewed the proposal over two consecutive meetings before granting approval. This decision is in line with Pakistan’s commitments under the International Monetary Fund’s Extended Fund Facility (EFF), which mandates a phased reduction in tariffs on imported used vehicles.
Beginning in the first quarter of FY26, all quantitative limits on the commercial import of vehicles less than five years old will be eliminated, provided they comply with environmental and safety regulations. From July 2026 onward, the age restriction will be fully removed. As outlined in the approved Tariff Policy Board (TPB) proposal, used vehicles classified under PCT 8703 will be permitted for import only if they meet the standards set by the Ministry of Industries and Production or other designated authorities.
The initiative seeks to align Pakistan’s tariff framework with international trade obligations while also ensuring compliance with environmental and safety standards.
Meanwhile, Local automakers have consistently called for tighter controls on used car imports, warning that lowering tariffs and allowing unrestricted commercial imports could reverse industrial progress and threaten years of investment and technology transfer.
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