ISLAMABAD: The federal government is moving towards gradually removing tariffs on used vehicle imports as part of a comprehensive auto policy set to take effects from July 1, 2026
Sources indicate that the draft of this new policy is currently being formulated and is in preliminary discussions with the International Monetary Fund (IMF).
The proposed framework envisions a step-by-step reduction of customs and regulatory duties on imported vehicles over the next four to five years. By 2030, a substantial decrease in customs duty rates is also anticipated.
As part of the plan, vehicles that are over five years old may eventually be allowed for import, provided they comply with strict safety and environmental standards and are accompanied by appropriate certification.Officials expect the draft policy to be finalized within this month, followed by further consultations with the IMF. The government intends to present the finalized policy to the federal cabinet for approval in the upcoming month.
This initiative aligns with the Ministry of Industries and Production’s broader goal to lower overall tariffs and foster a more transparent and competitive import environment.Starting from fiscal year 2027, the government proposes to cut additional duties by 10 percent each year. Additionally, the import of vehicles up to seven years old could be permitted after FY2027.
Simultaneously, the government plans to introduce enhanced safety regulations for domestically produced vehicles through the proposed Motor Vehicle Development Act, which will be submitted to parliament for approval.
Earlier, IMF Managing Director Kristalina Georgieva praised Pakistan’s ongoing efforts in implementing economic reforms. During her discussion with Finance Minister Muhammad Aurangzeb at the IMF–World Bank Spring Meetings in Washington, she acknowledged that Pakistan’s commitment to reform has helped sustain macroeconomic stability and attract investor confidence.
The post Pakistan plans to remove duties on used car imports under new policy appeared first on Karachi News.