Pakistan will allow commercial traders to import used cars older than five years from 1 July 2026, after the federal cabinet abolished the long-standing age cap, the Ministry of Commerce said.
In a clarification responding to a Federal Board of Revenue (FBR) memorandum dated 23 October 2026, the ministry said the age restriction on used-vehicle imports would no longer apply after 30 June 2026. The decision covers commercial import of used vehicles and was approved by the federal cabinet.
What still applies after the age limit ends
Ending the five-year rule does not mean an open door. The ministry clarified that commercial import of used vehicles remains subject to other import policy requirements. Vehicles must also meet applicable environmental and safety standards.
In practical terms, anyone planning to import used cars for trade still has to clear the wider policy checks that govern vehicle imports into Pakistan—only the blanket age cut-off of five years has been removed.
Tax measures tied to the new auto package
Reports say the government is likely to bring a mini-budget so it can put tax measures and levies under a new automotive policy into effect.
According to sources, electric vehicles (EVs) are expected to get sales-tax relief worth Rs85 billion under the proposed policy. The International Monetary Fund (IMF)—the global lender Pakistan is working with—has reportedly pressed for EV sales tax to rise from 1% to 18%. Official government documents, however, point to keeping the 1% sales tax on EVs valued at up to $75,000, which accounts for that proposed Rs85 billion relief.
Sources said the Rs85 billion shortfall would be covered through an alternative plan. A finance bill may impose a Federal Excise Duty (FED)—a federal tax on selected goods—and an Automotive Development Levy to raise replacement revenue.
Under the proposed auto policy, a 2% levy would apply to vehicles with engines between 1,001cc and 2,000cc, and a 10% levy to vehicles of 2,001cc and above. Official documents state the Automotive Development Levy would cover all locally assembled and imported petrol and internal combustion engine (ICE) vehicles—cars that run on petrol or similar fuel, not battery-only EVs.
A 10% FED may also be placed on EVs priced above Rs20 million, alongside a new carbon levy on petrol and ICE vehicles. The government expects to collect Rs25 billion through the carbon levy on petrol, diesel and ICE vehicles, and Rs37 billion from general levies on those vehicles.
Timeline: what has happened so far
- 30 June 2026: Ministry of Commerce says the age restriction on used-vehicle imports no longer applies after this date.
- 1 July 2026: Five-year age limit on commercial import of used vehicles is abolished under the cabinet decision.
- Cabinet approval (date not specified in available details): Federal cabinet approves removing the age limit for commercial used-vehicle imports.
- 23 October 2026: FBR issues a memorandum; the Commerce Ministry responds with a clarification on the age rule.
Aasan alfaaz mein
July 2026 se Pakistan mein paanch saal se zyada purani gariyan tijarati tor par import ho sakti hain. Age ki had khatam ho gayi hai, lekin doosre import rules aur safety standards ab bhi lagenge. Nayi auto policy ke under petrol aur ICE gariyon par extra levy aur carbon levy aa sakti hai. Agar aap sasti purani import gari dekh rahe hain, to age ab rukawat nahi, magar tax aur rules check karna zaroori hai.
