ISLAMABAD: Pakistan has officially allowed the commercial import of used vehicles, a move expected to reshape the auto sector and provide consumers with more options.
The Ministry of Commerce issued SRO 1895(I)/2025 on September 30, 2025, formally granting approval for the import of vehicles under specified tariff codes.
According to the notification, the government has amended the Import Policy Order 2022 to permit commercial import of used vehicles falling under PCT codes 8702, 8703, 8704, and 8711. This policy will initially apply to vehicles less than five years old until June 30, 2026. After this period, the age restriction may be relaxed.
The policy emphasizes compliance with strict environment, safety, and quality standards. The Engineering Development Board (EDB) has made it mandatory for vehicles to carry international certification in these areas before approval for commercial import.
Under the Import Policy Order, all import transactions must be routed through banks to ensure transparency. Furthermore, a 40% regulatory duty will apply on the import of older vehicles. The Federal Board of Revenue (FBR) is expected to issue a separate notification soon to enforce this duty.
Officials highlighted that only vehicles meeting global testing benchmarks will be cleared for commercial channels. Additionally, the Ministry of Industries will soon finalize rules for monthly depreciation and pricing adjustments on used vehicles over five years old.
The decision to open Pakistan’s auto sector for wider import options marks a significant shift aimed at increasing competition, protecting consumers, and aligning the market with international standards.
