Pakistan approves used car imports at a steep price

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the commercial import of used vehicles up to five years old, subject to environmental and safety standards, while imposing an additional 40 percent Regulatory Duty (RD) until June 30, 2026.

The decision was made during a meeting of the ECC, chaired virtually by Finance Minister Muhammad Aurangzeb, according to a statement issued by the Ministry of Finance.

Under the revised policy, the government will amend the Import Policy Order 2022 to allow the commercial import of used vehicles. However, initially, only cars not older than five years will be permitted until 30th June 2026, after which the vehicle age limit will be lifted.

The ECC further directed that such commercial importation would remain subject to strict compliance with prescribed environmental and safety standards.

The Committee also approved the imposition of 40 percent Regulatory Duty (RD), in addition to the existing customs duties, on the commercial import of used vehicles.

The RD will then be phased out gradually, reduced by 10 percentage points each year until it is eliminated by the 2029–30 fiscal year, in accordance with recommendations from the Tariff Policy Board.

In a separate development, the ECC approved a Technical Supplementary Grant of Rs800 million for the Pakistan Virtual Asset Regulatory Authority (PVARA).

Among others, the meeting was attended by Federal Minister for Petroleum, Ali Pervaiz Malik; Federal Minister for National Food Security and Research, Rana Tanveer Hussain; Federal Minister for Power, Sardar Awais Ahmad Khan Leghari; federal secretaries and senior officials from concerned ministries and regulatory bodies.