Pakistan Removes 5-Year Age Limit on Commercial Used Car Imports: Older Foreign Cars Now Allowed, But Duties and Safety Rules Still Apply (3 November 2026)

Pakistan has formally removed the five-year age limit on commercial imports of used vehicles, opening the door for registered commercial importers to bring in older foreign cars — a decision that could shake up the country's car market, even though duties and safety rules still apply.

The Ministry of Commerce confirmed the change in an office memorandum issued on 30 October 2026 to the Federal Board of Revenue (FBR), Business Recorder reported on its front page on 3 November. The memorandum says the five-year age restriction on commercial imports of used vehicles stands removed with effect from 1 July 2026.

What exactly has changed?

Until 30 June 2026, commercial imports of used vehicles were allowed only if the vehicle was not more than five years old. That permission, approved earlier by the Economic Coordination Committee (ECC) of the Cabinet and the Federal Cabinet, covered vehicles under Pakistan Customs Tariff headings 8702 (buses and vans), 8703 (cars), 8704 (goods vehicles) and 8711 (motorcycles).

The Commerce Ministry has now clarified, in reply to an FBR memorandum dated 23 October seeking guidance on what applied after June, that the age limit ceased to apply after 30 June 2026. In other words, from 1 July 2026 there is no five-year ceiling on commercial used-vehicle imports.

What has NOT changed — and why prices may not fall at once

The removal of the age limit does not mean an open door. Importers must still comply with the Import Policy Order and all other regulatory requirements, and every vehicle must meet the environmental and safety standards prescribed by the Ministry of Industries and Production through the Engineering Development Board (EDB).

No new maximum age has been announced, so the memorandum does not itself set a replacement limit — but it also does not waive duties. Reports note that a 50 percent regulatory duty still applies to commercial imports, which is why an immediate, sharp fall in used-car prices is unlikely, even though buyers may get more choice and better-equipped older models. One dealers' representative quoted in reports advised importers to focus on vehicles no more than about ten years old.

Why local carmakers are worried

The domestic automobile industry has urged the government to tighten controls on personal import schemes, warning that their alleged misuse is threatening local manufacturing, employment and investment.

Business Recorder reported that the Pakistan Automotive Manufacturers Association (PAMA) has pointed to a sharp rise in used-vehicle imports under the Gift Scheme — from just seven units in May 2026 to 806 in June, 1,876 in July, 1,406 in August and 2,238 in September. PAMA has called for safeguards against misuse of that scheme and a reassessment of policies encouraging excessive used-vehicle imports at the expense of local manufacturing.

What this means for buyers

For ordinary buyers, the practical takeaway is choice, not a guaranteed bargain. Commercial importers can now legally source older vehicles, which could widen the range of cars on the market. But the final price will still depend on duties, shipping, inspection and safety compliance — so anyone planning to buy should compare the total landed cost, not just the age of the car, and check that the vehicle meets the required standards before committing.

The clarification removes months of uncertainty for commercial importers over whether the five-year cap survived past June. Whether it translates into cheaper cars on showroom floors will depend on how importers, duties and the local industry respond in the coming months.

Sources: Business Recorder (front page, 3 November 2026); Profit by Pakistan Today (3 November 2026); PakWheels; Daily Pakistan.

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ROMAN URDU VERSION:

Pakistan ne commercial tor par imported used gaariyon par 5 saal ki age limit khatam kar di hai. Commerce Ministry ne 30 October 2026 ko FBR ko memo mein confirm kiya hai ke 1 July 2026 se ye pabandi khatam ho gayi hai — ab registered commercial importers 5 saal se purani gaariyan bhi import kar sakte hain.

Pehle sirf 5 saal tak purani gaariyan (cars, buses, goods vehicles aur motorcycles) commercial import ki ja sakti thi. Ab ye hadd khatam ho gayi hai, lekin is ka matlab ye nahi ke har cheez free ho gayi hai — importers ko ab bhi Import Policy Order aur Engineering Development Board ke safety aur environmental standards par poora utarna hoga, aur 50 percent regulatory duty bhi laagu rahegi, is liye gaariyon ki qeemtein foran bohot kam hone ki guarantee nahi hai.

Local car makers ne Gift Scheme ke ghalat istemal par tashweesh zahir ki hai aur kaha hai ke used gaariyon ki import mein izafa local manufacturing ko nuqsan pahuncha sakta hai. Kharidaron ke liye sab se bara faida choice mein izafa hai — lekin khareedne se pehle total cost aur standards zaroor check karein.