The federal government has removed the five-year age restriction on commercial imports of used vehicles. The change took effect on July 1, 2026, according to the Ministry of Commerce.

The ministry confirmed the decision in an official memorandum sent to the Federal Board of Revenue (FBR). The document was issued on October 30, 2026.

The clarification followed a request from the FBR dated October 23. The tax authority had asked whether the age restriction remained applicable after June 30, 2026.

The ministry confirmed that the restriction had been removed under an earlier government decision. This means older used vehicles can now be imported commercially, subject to other applicable requirements.

Five-Year Age Limit Removed for Used Vehicle Imports

Previously, commercial Car Imports were restricted to used vehicles not older than five years. This condition applied until June 30, 2026.

The restriction covered vehicles listed under PCT headings 8702, 8703, 8704, and 8711.

These categories include different types of passenger vehicles, commercial vehicles, and motorcycles.

The ministry explained that the original decision had been approved by the Economic Coordination Committee (ECC) and the Federal Cabinet.

The approved policy also allowed the five-year age restriction to be removed after June 30, 2026.

As a result, the age limit officially ended from July 1, 2026. The Ministry of Commerce communicated this position to the FBR through its latest memorandum.

However, removing the age restriction does not mean all import conditions have been abolished.

Other Import Requirements Will Remain Applicable

The ministry clarified that commercial imports must still meet existing import policy requirements.

Imported vehicles must also comply with the relevant environmental and safety standards.

These standards are prescribed by the Ministry of Industries and Production and the Engineering Development Board (EDB).

Importers will therefore need to fulfil the applicable regulatory conditions. The removal of the age limit only changes the restriction based on vehicle manufacturing age.

Commercial Used Car Imports Have Increased

Pakistan introduced commercial imports of used vehicles last year under a phased policy.

The government also imposed an additional 40% duty on these imports. This duty is scheduled to decrease by 10 percentage points annually until 2029-30.

Since the policy changes, used vehicle imports have increased significantly.

Government sources previously reported that Pakistan imported 2,276 used vehicles in September 2026. This was considerably higher than the 48 vehicles imported in May.

The increase reflects the growing activity in Pakistan’s used vehicle import market.

Local Automakers Express Concerns

The rising number of imported vehicles has raised concerns among local car manufacturers.

Automakers are concerned about the potential impact of increased imports on locally assembled vehicles.

The latest policy change could further affect competition between imported and locally manufactured cars.

However, the actual market impact will depend on import volumes, duties, regulatory requirements, and consumer demand.

in other related news also read China Expresses Concern Over Pakistan-Afghanistan Tensions

With the five-year age restriction removed, commercial Car Imports can now include older used vehicles. Importers must still follow all remaining government regulations and prescribed standards.