The Economic Coordination Committee (ECC) of the Cabinet, chaired virtually by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb from New York, has approved a significant policy change concerning the commercial import of used vehicles.

In the meeting, the ECC decided to amend the Import Policy Order, 2022, to permit the commercial import of used vehicles, with a restriction that only vehicles not older than five years will be allowed until June 30, 2026. Following this date, the age limit for imported vehicles will be lifted.

Additionally, the ECC approved a 40% Regulatory Duty (RD) on the import of used vehicles under five years old, which will be applied on top of existing customs duties. This enhanced duty will remain in effect until June 30, 2026, after which it will decrease by 10 percentage points each year, ultimately reaching zero by 2029-30, in line with the Tariff Policy Board’s recommendations.

The meeting also saw the approval of an Rs. 800 million Technical Supplementary Grant for the Pakistan Virtual Asset Regulatory Authority (PVARA), aimed at enhancing regulatory oversight in the virtual assets sector.

The meeting was attended by key federal ministers and senior officials from various ministries, including Minister for Petroleum Ali Pervaiz Malik, Minister for National Food Security and Research Rana Tanveer Hussain, and Minister for Power Sardar Awais Ahmad Khan Leghari.