The federal government has decided to gradually eliminate additional customs and regulatory duties on imported cars as part of a broader strategy tied to a new auto policy set to be implemented from July 1, 2026.
According to the proposed framework, these extra duties on imported cars will be reduced by 10 percent annually starting from fiscal year 2027. The plan outlines a complete removal of such duties within four years, while overall customs duty rates will also be progressively decreased by 2030 to create a more balanced tariff structure.
The policy also includes relaxed conditions for vehicle imports, allowing cars up to seven years old to be brought into the country after fiscal year 2027. However, these imported cars must comply with strict environmental and safety regulations to ensure they meet acceptable standards.
In parallel, the government is focusing on improving the safety of locally manufactured vehicles. A new law, expected to be approved by Parliament, will require domestic automakers to follow international safety standards, aiming to enhance overall road safety across the country.
Officials confirmed that the draft of this policy is currently under review, with consultations taking place with the International Monetary Fund (IMF). The finalized proposal is expected to be presented before the federal cabinet in the coming month for approval.
Authorities believe that these reforms will encourage greater competition in the automobile market, leading to more stable pricing for both locally produced vehicles and imported cars. By gradually reducing duties and aligning regulations with global practices, the government aims to modernize Pakistan’s auto sector.
Overall, the policy is seen as a significant step toward making imported cars more accessible while ensuring quality, safety, and compliance with international standards in the domestic automotive industry.
Read more: Punjab introduces new regulations for the registration of imported cars
