ISLAMABAD – The Economic Coordination Committee (ECC) has given the green light for the commercial import of used vehicles up to five years old, but with strict conditions on safety and environmental standards.
The decision was taken in an ECC meeting held on Wednesday, chaired virtually by Finance Minister Muhammad Aurangzeb. According to the Finance Ministry, this step is part of amendments to the Import Policy Order 2022.
Under the new policy, only cars not older than five years will be allowed for import until June 30, 2026. After that date, the restriction on vehicle age will be lifted.
To discourage excessive imports, the ECC approved a 40% Regulatory Duty (RD) on used cars, in addition to the regular customs duties. This extra duty will remain until June 2026 and then gradually decrease—by 10% each year—until it is completely removed by the fiscal year 2029–30, as recommended by the Tariff Policy Board.
The committee stressed that all imported vehicles must strictly follow the country’s environmental and safety standards.
In another decision, the ECC also approved a supplementary grant of Rs800 million for the Pakistan Virtual Asset Regulatory Authority (PVARA) to support its operations.