Pakistan is considering permitting the import of 5-year-old used vehicles as part of broader economic reforms aligned with recommendations from the International Monetary Fund (IMF).

Economic managers are currently deliberating on a set of IMF proposals aimed at liberalizing the auto sector. These include abolishing regulatory duties, reducing tariffs on Completely Built-Up (CBU) units to below 10%, and eventually bringing overall auto tariffs down to single digits within the next five years.

Another key proposal under review is allowing the commercial import of vehicles.

Currently, Pakistan allows the import of used cars up to 3 years old and SUVs up to 5 years old under specific schemes. The proposed policy shift would extend the age limit for imported vehicles to 5 years across the board.

Government insiders indicate that the policy change will be introduced in the upcoming federal budget as part of efforts to meet IMF conditions for continued financial support.

However, sources also warn that easing import restrictions and lowering tariffs could lead to a rise in the country’s import bill and adversely impact local automobile manufacturers due to increased competition from imported vehicles.