The Economic Coordination Committee (ECC) of the federal cabinet, chaired virtually by Finance Minister Muhammad Aurangzeb from New York, on Tuesday approved key policy measures to allow the commercial import of used vehicles for the first time under a regulated framework.
In a statement issued by the Finance Division, the ECC approved amendments to the Import Policy Order, 2022, to permit commercial import of used vehicles, initially limiting eligibility to vehicles not older than five years. This restriction would remain in effect until June 30, 2026, after which the age limit would be removed.
The decision marks a significant shift in Pakistan’s auto import policy and is aimed at increasing consumer choice while ensuring adherence to international environmental and safety standards. The ECC emphasized that all imported vehicles must meet prescribed regulations.
The policy shift is expected to impact the local automobile market, which has long been dominated by a few manufacturers, by introducing new competition and potentially improving affordability and quality standards for consumers.
To regulate inflows and discourage indiscriminate imports, the ECC also imposed a 40% Regulatory Duty on commercial imports of used vehicles, in addition to existing customs duties. This duty will apply until June 30, 2026, and will then be phased out gradually by 10% each year, reaching zero by fiscal year 2029-30, as recommended by the Tariff Policy Board.
In a separate development, the ECC approved a Technical Supplementary Grant of Rs. 800 million for the Pakistan Virtual Asset Regulatory Authority (PVARA), an emerging body tasked with overseeing the country’s digital asset and cryptocurrency landscape.
Apart from the finance minister, Petroleum Minister Ali Pervaiz Malik, National Food Security Minister Rana Tanveer Hussain, Power Minister Sardar Awais Ahmad Khan Leghari, along with senior government officials and secretaries from relevant ministries attended the meeting.