Used car import age limit abolished: vehicles older than five years can be imported commercially

Pakistan has abolished the five-year age limit on the commercial import of used vehicles, the Ministry of Commerce said, so cars, vans, pick-ups and motorcycles older than five years can now be brought in commercially, as long as they meet the other import, safety and environmental rules, ARY News reported on 30 October.

The ministry gave the clarification in reply to an FBR memorandum dated 23 October 2026. It said the federal cabinet approved removing the cap and that the restriction stopped applying after 30 June 2026.

What changed for used car imports

The five-year window itself was new only a year ago. In September 2025 the Economic Coordination Committee approved commercial imports of used vehicles under five years old, and the Commerce Ministry's SRO 1895(I)/2025 allowed them until 30 June 2026 with an extra 40% regulatory duty, Profit reported at the time. That order covered PCT headings 8702, 8703, 8704 and 8711 (buses and vans, cars, goods vehicles and motorcycles) and said the age cap "may be lifted" after June 2026. Under the tariff plan reported then, the regulatory duty was to fall by 10 percentage points a year to zero by 2029-30.

What it means if you are buying

• More choice, older stock: dealers can now import vehicles beyond five years old, which usually means lower landed prices for older Japanese models, but also older cars with more wear.
• Duties still decide the price: an older car is not automatically cheaper once customs duty, regulatory duty and sales tax are added. Before you commit, run the numbers with our car registration tax calculator and token tax calculator.
• Financing: banks usually lend on newer cars only. Check what a loan would cost on our car loan calculator.
• Standards: an imported vehicle still has to pass the environmental and safety requirements, so a very old car that fails them cannot be cleared.

A mini-budget on cars may follow

The government is also expected to bring a mini-budget to put the new automotive policy's taxes into law, ARY News reported, citing sources. The reported plan includes:

• An Automotive Development Levy of 2% on petrol and other engine vehicles of 1,001cc to 2,000cc and 10% above 2,000cc, locally assembled or imported.
• Keeping 1% sales tax on EVs worth up to $75,000 (about Rs 2.08 crore at today's rate), worth about Rs 85 billion in relief, though the IMF has reportedly asked for 18%.
• A 10% federal excise duty on EVs priced above Rs 20 million, and a new carbon levy on petrol, diesel and engine vehicles expected to raise Rs 25 billion.

These measures are proposals reported from official documents, not yet law. We will update this page when a notification or finance bill is published. For the latest new-car prices, see our car price list and the used-car import trend in our September import numbers.