ISLAMABAD: The government has definitively ruled out reversing existing taxes on car imports, instead opting to introduce mandatory registration and certification procedures for used imported vehicles. These measures are part of a broader strategy to regulate the used car market and uphold quality standards across the country.
The decision was communicated during a meeting chaired by Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan, with the Car Dealers and Importers Association in Islamabad. Discussions at the meeting primarily focused on the upcoming Auto Policy 2026, various import and export issues, and additional customs duties.
Liberalized Imports and Electric Vehicle Push
SAPM Khan acknowledged the Car Dealers and Importers Association as a crucial stakeholder in the policy formulation process, reiterating Prime Minister Shehbaz Sharif’s vision for promoting a liberalized and competitive import mechanism for vehicles in Pakistan.
Highlighting the country’s strategic shift towards sustainable transportation, Khan stated that Pakistan is actively moving away from petrol-based vehicles towards more environmentally friendly alternatives. In line with the prime minister’s directives, the government has introduced a comprehensiveElectric Vehicle (NEV) Policy 2025-2030.
Under this ambitious policy, Pakistan aims to convert a significant2.2 million vehicles to electric by the year 2030. “The promotion of electric vehicles is crucial for reducing smog and improving public health,” said Khan. “EVs are not only cost-effective but also beneficial for the environment and the people of Pakistan.”
During the meeting, the Association assured the Ministry of Industries and Production that they would submit detailed proposals to support the policy process. SAPM Khan, in turn, assured the delegation of the government’s commitment to carefully reviewing their suggestions and extending full cooperation.
Collaboration with Car Dealers and Importers
In a related development, Rana Ihsaan Afzal Khan, Coordinator to the Prime Minister of Pakistan on Commerce, also held a meeting with the Patron in Chief, Chairman, and representatives of the All-Pakistan Car Dealers and Importers Association (APCDIA). The purpose of this engagement was to strengthen collaboration between private and government stakeholders in the auto sector.
The APCIA expressed appreciation for the government’s plans to allow the import of commercial vehicles through amendments to the Import Policy Order. They stressed that continued consultations with their association could lead to the formulation of a more well-rounded and effective policy for commercial vehicle imports.
Afzal Khan reassured the association that the Ministry of Commerce recognizes the importance of stakeholder consultations and invited tangible proposals from the APCDIA for incorporation into the updated Import Policy Order, which is expected to be issued after September 2025.
