The upcoming federal budget may bring major relief for car buyers in Pakistan as the government plans to reduce import duties on used vehicles and extend the age limit for imports. According to All Pakistan Motor Dealers Association Chairman HM Shahzad, duties on used cars—currently as high as 475%—could be cut by 20% annually over the next five years as part of Pakistan’s commitments to the IMF.
A key change under consideration is increasing the import age limit from three to five years, which would make vehicles significantly cheaper. Shahzad explained that in Japan, a five-year-old car costs nearly half the price of a three-year-old model. If approved, this could reduce prices by Rs. 500,000 to Rs. 1 million, making small Japanese cars available for under Rs. 2 million—far cheaper than locally assembled alternatives, which currently start at Rs. 3.1 million.
The move aims to provide affordable, high-quality options for consumers while aligning with IMF-backed trade liberalization. If implemented, commercial imports of used cars could also be allowed, further boosting market competition.
Also read moreIMF deal unlocks Pakistan’s used car market – but will prices really drop?
