Big Shift in Auto Policy as Pakistan Allows Import of Five-Year-Old Used Cars

ECC Approves Used Car Import Policy

The Ministry of Finance has officially announced that commercial import of used vehicles up to five years old will be permitted until June 30, 2026. This decision comes following approval from the Economic Coordination Committee (ECC), which emphasized the need to provide more affordable options for consumers while stabilizing the automobile sector.

Import of Used Cars and Its Impact on Auto Market

Allowing the import of used cars is expected to increase competition in Pakistan’s auto market. For years, consumers have faced limited choices and high prices due to a lack of variety in locally assembled cars. With the import of used vehicles being eased, industry experts believe car buyers will now have better access to affordable, fuel-efficient, and reliable options.

Local car manufacturers, however, have raised concerns that the policy could impact domestic production. Automakers argue that the surge in used vehicle imports may discourage investment in local assembly plants. On the other hand, consumer advocacy groups welcome the move, stating that this policy will reduce the monopoly of existing players and make cars more affordable.

Policy Timeline for Used Vehicle Imports

According to the Finance Ministry’s notification, the age cap of five years will remain in place only until June 30, 2026. After that date, the restriction on car age limits will be removed, allowing imports of even older vehicles.

This change is being seen as a major shift in Pakistan’s car import policy. Until now, strict rules had restricted the availability of foreign cars in the country, forcing many buyers to rely solely on expensive new models. By 2026, this flexibility could reshape the entire automotive landscape, giving people from middle-income households more access to affordable transportation.

Benefits of Importing Used Cars in Pakistan

The decision is being viewed as a win for car buyers across Pakistan. Some of the key benefits expected include:

• Affordable pricing – Used cars are often significantly cheaper than brand-new models.

• More variety – Customers will have access to different brands and models not currently available in Pakistan.

• Fuel efficiency – Many imported vehicles are smaller and more fuel-efficient compared to locally produced cars.

• Technology upgrades – Imported cars often come with better safety and entertainment features.

Future of the Auto Industry in Pakistan

While this decision provides immediate relief for car buyers, questions remain about its long-term impact on the local auto industry. Analysts suggest that policymakers must strike a balance between consumer affordability and industrial growth.

The removal of the age cap after 2026 could lead to a massive inflow of older cars, potentially slowing down investment in local automobile manufacturing. However, if managed well, the policy could also push local manufacturers to innovate, improve quality, and reduce prices to remain competitive.

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