- August 27, 2026
- Posted by: Tresmark
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Pakistan’s used vehicle imports declined by around 16% in FY2025-26, with both the quantity and value of imported vehicles falling compared with the previous fiscal year.
According to official data, 36,755 used vehicles worth $187.81 million were imported during FY26, compared with 43,675 vehicles valued at $243.85 million in FY25.
Used vehicles were imported under the Gift, Transfer of Residence and Personal Baggage schemes. However, the government abolished the Personal Baggage scheme during FY26, citing widespread misuse, contributing to the decline in imports.
Rules governing the Gift and Transfer of Residence schemes were also tightened. The required period of stay abroad was increased to three years, while vehicles imported under the Transfer of Residence scheme must now originate from the country where the importer resided.
The government also removed the previous five-year age restriction on used vehicle imports and introduced pre-shipment inspections and additional safety requirements.
The changes come as Pakistan implements a five-year tariff reform programme under its IMF commitments, with vehicle import tariffs scheduled to gradually decline.
Local automakers have warned that lower tariffs and removal of the age limit could eventually lead to a significant increase in used vehicle imports, potentially intensifying competition for domestic manufacturers.
