The Cabinet Economic Coordination Committee (ECC) decided on Wednesday to amend relevant provisions of the 2022 import policy order to allow commercial imports of used cars.
According to a statement issued by the Finance Department, “The ECC considered a summary of commercial imports of used cars and after detailed discussion, the proposal was approved.”
Initially, until June 30, 2026, only vehicles not over five years of age will be allowed, and the age limit of the vehicle should be removed thereafter.
According to the statement, Federal Secretary of Finance and Taxation Muhammad Aurangzeb actually chaired the ECC meeting from New York.
The ECC further directed: “This commercial import will strictly comply with prescribed environmental and safety standards”.
It added: “The Commission also approved the imposition of a 40% regulatory obligation, in addition to the existing customary obligation, namely commercial import of used cars (less than five years).
“This enhanced responsibility will remain applicable until June 30, 2026. It should be followed by a gradual reduction of 10 percentage points per year as recommended by the Commission on Tariff Policy to reach zero at 2029-30.”
The statement further Richard said that in another summary of the Cabinet department, the ECC considered and approved a technical supplement of Rs 80 crore to support the Pakistan Virtual Assets Regulatory Agency (PVARA).
The ECC’s decision will now be approved by the federal cabinet.
Federal Minister of Petroleum Ali Pervaiz Malik attended the meeting, Federal Minister of Food Security and Research Rana Tanveer Hussain, Federal Power Sardar Awais Ahmad Khan Leghari, Federal Secretary and senior officials and senior officials of relevant ministries and regulatory agencies, the statement.
Last month, local auto parts manufacturer warn If the government opens commercial imports of used cars from September, it may shut down Pakistan’s automobile assembly industry in the next two years.
Former Chairman of the Pakistan Auto Parts and Accessories Manufacturers Association (PAAPAM) Aamir Alllawala raised concerns in media lettering for various vending machines, noting that vehicles used already account for 25% of the market – over 40,000 units. By comparison, India’s used car market share is zero, Vietnam has 0.3% and Thailand has 1.2%.
Alllawala said the import tariff range for fully established (CBU) units in Pakistan is 50-100%, compared to 125% in India, 52% in Vietnam and 80% in Thailand. He added that the insignificant amount of used car imports in these countries is the result of tariffs and administrative measures.
In May, the Association of All Auto Dealers and Importers of Pakistan (APCDIA) pushes governments to rationalize tariffs in the automotive industry urge The government allows the import of used cars with certain conditions through banking channels for the budget fiscal 26.
The association said this step would eliminate foreign exchange outflows through the curbside market and would promote the economy as all transactions would be conducted through bank channels, adding that this would promote not only the tax culture but all importers. Bring transparency into this process.
