Pakistan's imports of used vehicles, both in terms of quantity and value, witnessed a declining trend during the last fiscal year 2025-26, with the total number of imported vehicles standing at 36,755, having a value of $187.81 million. Earlier, imports of used vehicles in terms of both quantity and value had remained higher during fiscal year 2024-25. In terms of numbers, imports stood at 43,675 vehicles, with a total value of $243.85 million. Used vehicles were imported into Pakistan under three different schemes during the last fiscal year, including personal baggage, gift, and transfer of residence schemes.

When the government implemented the National Tariff Policy under the IMF programme for a five-year period from 2025 to 2030, it agreed to rationalise the weighted average import tariff from 10.7 percent and gradually reduce it to 5.99 percent by 2030. It was also agreed that the weighted import tariff on vehicles would be brought down every year and reduced to 5.99 percent over the five-year period. The government abolished the personal baggage scheme during fiscal year 2025-26, arguing that the facility had been misused to a large extent. The abolition of the scheme consequently contributed to a reduction in the quantity of used vehicles imported into Pakistan.

The two other schemes, namely gift and transfer of residence, were also made more stringent. Under the revised rules, the required period of stay abroad for importers was increased to three years. Furthermore, under the transfer of residence scheme, imports were allowed only from the country where the importer had stayed. For instance, if a person had stayed in the United Kingdom, he or she would have to import a used vehicle from the same country and would not be allowed to import a used car from Japan.

The government has also removed the five-year age restriction and introduced pre-shipment inspection and other safety measures as prerequisites for allowing the import of used vehicles. Local manufacturers, however, have expressed apprehension that reduced tariffs and the removal of the five-year age limit could result in a flood of used vehicle imports into the country in the months and years ahead.