The Government of Pakistan has made a major update to Pakistan Import 5-Year-Old Cars policy. From September 2025, commercial importers will be allowed to bring in used vehicles that are up to five years old. This decision was shared during a meeting of the Senate Standing Committee on Finance, where officials from the FBR also discussed future changes in customs duties and tariff systems.
This policy change is part of a broader plan to support the country’s economy. It’s meant to give car buyers more choices, help the government collect more tax, and bring Pakistan’s trade system closer to what’s followed around the world.
What’s New in the Policy?
So far, people could only bring in cars up to three years old under the baggage scheme. But now, with the new Pakistan Import 5-Year-Old Cars policy in place, the age limit has been raised. This change means car buyers will have more options and greater ease when choosing imported vehicles.
Here’s What’s Different
- Starting from September 2025, importers will be allowed to bring in used cars that are up to five years old for commercial purposes as per the Pakistan Import 5-Year-Old Cars
- No matter how many cars are imported, a fixed 40% additional customs duty will apply to each one.
- The policy aims to offer buyers more variety in vehicles while still keeping duties in place to protect the local auto industry.
As car prices keep rising in the country, more people and importers may start looking at other countries to find cars that fit their budget better. This new approach to Pakistan Import 5-Year-Old Cars is expected to play a key role in this trend.
Simple Tariff Policy to Roll Out in 4 Years
This move isn’t just meant to improve things inside the country. It’s also part of Pakistan’s promise to an international lender. To continue receiving financial help, Pakistan needs to slowly reduce the taxes on imported cars.
Import Tax Changes Coming Soon
Over the next four years, the tax on bringing in vehicles from abroad will be reduced by 10% each year. If all goes smoothly, there won’t be any import duty left by 2029.
As taxes on imported cars go down, local car makers may feel the heat. Cheaper and better cars from other countries can give tough competition, pushing local companies to improve their quality and lower prices. Officials have also said that if this plan works well, cars as old as six or seven years might be allowed into the country later on, expanding the scope of Pakistan Import 5-Year-Old Cars policy.
Import rules may be easier now, giving people more car options, but buying a car is still not easy. The extra customs duty makes them costly, and buyers are also facing other challenges.
Latest Changes in Tax Rules
Sales tax on small cars up to 850cc has been raised from 12.5% to 18%. Because of this, many low-income families are finding it even more difficult to afford simple and budget-friendly vehicles.
The Senate committee has suggested that both baggage and commercial car imports should follow the same rule of not being older than five years. Although this proposal is still under consideration, officials have clearly stated that a 40% duty will continue to apply on cars brought through the baggage scheme.
Overseas Pakistanis can breathe a sigh of relief the car gift scheme that allows them to send vehicles to their families will stay the same. It remains a reliable way to help loved ones back home.
Finance Minister Muhammad Aurangzeb said that Pakistan needs a simple and fair tariff policy. He shared that constant changes and unclear rules have hurt trade and scared away investors. The new measures, he added, are aimed at fixing these issues and helping the country grow steadily in the long run.
It’s still unclear if this decision will truly make things easier for regular car buyers or mostly benefit the importers. What really matters now is how the next steps are handled, and whether a fair balance can be kept between car prices, public interest, and support for local manufacturers under the Pakistan Import 5-Year-Old Cars framework.
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