Govt tightens used car imports with 40% regulatory duty

October 30, 2025 (MLN): The government has imposed an additional 40% regulatory duty on the commercial import of used cars in a move aimed at discouraging misuse of import schemes and providing a balanced incentive structure for the local automotive industry.

The declaration came during a high-level meeting held at the Ministry of Commerce, co-chaired by Federal Minister for Commerce Jam Kamal Khan and Special Assistant to the Prime Minister on Industries Haroon Akhtar Khan, where senior officials and industry representatives reviewed policy measures for the auto sector, regulation of used car imports, and facilitation for local manufacturers and genuine overseas Pakistanis.

The meeting was attended by delegations from the Pakistan Automotive Manufacturers Association (PAMA) and the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), along with senior officials of the Ministry of Commerce, Ministry of Industries & Production, and Federal Board of Revenue (FBR).

Speaking at the meeting, Federal Minister Jam Kamal Khan said that the government’s focus is to ensure transparency, compliance, and fair competition in the auto sector while strengthening domestic production capabilities.

He emphasized that the 40% regulatory duty will be gradually reduced each year, striking a balance between protecting local manufacturers and maintaining market competitiveness.

He added that by introducing pre-shipment and post-shipment inspection systems through the Engineering Development Board (EDB) and enforcing strict quality control measures, the government aims to curb the misuse of commercial used car imports and encourage adherence to quality standards.

“By enforcing quality inspections and defining clear import rules, we aim to promote compliance and transparency while supporting Pakistan’s industrial growth,” the Minister said, reaffirming the Ministry’s commitment to facilitating local manufacturers and making the domestic industry more competitive and self-sustaining.

The meeting also discussed harmonizing the baggage, gift, and transfer of residence schemes to ensure consistency and simplify regulatory procedures. Officials briefed that currently, eligibility for the baggage scheme requires a six-month stay abroad, and it was proposed to standardize the eligibility period across all schemes to promote uniformity.

SAPM Haroon Akhtar Khan appreciated the industry’s active engagement and stressed the importance of coordination between the commerce and industries divisions to build a sustainable and competitive automotive ecosystem. He urged both trade bodies to submit their proposals for the upcoming Automobile Policy, which the Ministry of Industries aims to finalize by November.

Industry representatives from PAAPAM and PAMA shared detailed recommendations on localization, vendor development, tariff rationalization, and research and development incentives, highlighting the need for long-term policy stability to attract investment and promote growth.

Concluding the meeting, Jam Kamal Khan reaffirmed the government’s resolve to control import misuse, strengthen local manufacturing, and enhance Pakistan’s industrial competitiveness.

He emphasized the continuation of regular consultations between the government and industry stakeholders to ensure sustainable growth and consistent progress in the automotive sector.

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