The federal government has removed the five-year age limit on the commercial import of used vehicles, allowing businesses to import older cars from July 1, 2026.
The Ministry of Commerce confirmed the decision in an office memorandum sent to the Federal Board of Revenue (FBR) on October 30, 2026.
The clarification came after the FBR sought guidance on October 23 over whether the five-year age restriction on commercial imports remained applicable after June 30, 2026.
Age Restriction Officially Removed
According to the memorandum, commercial imports of used vehicles under PCT headings 8702, 8703, 8704, and 8711 were previously restricted to vehicles no older than five years. This condition was applicable until June 30, 2026.
The imports were also subject to environmental and safety standards prescribed by the Ministry of Industries and Production and the Engineering Development Board (EDB).
However, the ministry clarified that the decision approved by the Economic Coordination Committee (ECC) and the Federal Cabinet allowed the age restriction to be removed after June 2026.
“In view of the approved decision of the Federal Cabinet, the five-year age limit for the commercial import of used vehicles stands removed with effect from 01.07.2026,” the memorandum stated.
The removal of the age cap does not exempt importers from other applicable import policy conditions, environmental requirements, and prescribed safety standards.
Used Car Imports Surge
Pakistan opened commercial imports of used vehicles last year under a phased policy that imposed an additional 40 percent regulatory duty. The duty is scheduled to decline by 10 percentage points annually until fiscal year 2029-30.
Used car imports have increased sharply since the policy changes. Government sources earlier told RBN that 2,276 used vehicles were imported in September 2026, compared with just 48 in May.
The sharp increase has raised concerns among local automobile manufacturers, who fear that rising imports could put additional pressure on locally assembled vehicles.
The removal of the five-year age restriction is likely to further expand the range of used vehicles that commercial importers can bring into Pakistan.
