ISLAMABAD: The federal government has fulfilled another International Monetary Fund (IMF) requirement by allowing the commercial import of used vehicles, effective October 1.
A notification issued by the Ministry of Commerce states that cars older than five years can now be imported commercially. However, these vehicles will face a 40% regulatory duty, and all transactions must be processed strictly through banking channels.
The Federal Board of Revenue (FBR) is expected to issue a separate notification soon regarding the imposition of the duty.
Meanwhile, the Engineering Development Board (EDB) has set tough conditions for importers, making international certification mandatory for all vehicles brought into the country.
Officials also revealed that rules on monthly depreciation and valuation of used vehicles are being finalized and will be released shortly.
Industry experts say the move may provide some relief to consumers facing soaring car prices and limited options in the local market. However, they warn that the decision could further strain Pakistan’s struggling auto industry, which is already grappling with declining sales, high costs, and production cuts.
