ISLAMABAD—Budget 2025-26 is around the corner, and all eyes are on auto policy, with Car Prices in Pakistan are expected to come down amid major changes.
Sources familiar with development said Pakistani government is considering proposal to extend age limit for importing used vehicles from 3 to 5 years in upcoming 2025–26 budget in bid to standardize age limit across all vehicle categories, including passenger cars and SUVs, potentially expanding the options available to consumers in Pakistan’s auto market.
As of now, the country with 242 million people permits import of used cars up to three years old and big jeeps up to five years under specific schemes. The proposed revision seeks to unify the age limit to five years for all vehicle types. Besides revising age limit, Pakistnai government is also reviewing tariff structures on Completely Built-Up (CBU) vehicles.
Discussions are underway to gradually phase out regulatory duties and reduce tariffs to below 10pc, with the long-term goal of bringing overall auto-sector tariffs down to single digits over the next 5 years.
Top Imported Cars in Pakistan
| Car Model | Price Range |
|---|---|
| Suzuki Every | 15 lac – 25 lac |
| Toyota Vitz | 25 lac – 43 lac |
| Daihatsu Mira | 30 lac – 40 lac |
| Toyota Prius | 30 lac – 120 lac |
| Honda Vezel | 45 lac – 70 lac |
| Toyota Aqua | 60-70 lac |
NOTE; The above mentioned vehicles are among top Imported Vehicles in Pakistan as per recent stats
The country’s apex tax collection authority also implemented several controls to prevent misuse of used car import schemes. Previously, schemes like the personal baggage, transfer of residence, and gift schemes were frequently exploited. Under the current Import Policy Order (IPO) 2022, only overseas Pakistanis who have not imported, gifted, or received a vehicle in the past two years are eligible to use these schemes.
FBR has also clarified taxation rules regarding the auction of used cars. Serviceable used vehicles will not be subject to an additional 18% sales tax if the tax has already been paid at import or local purchase. However, condemned or unserviceable cars will still be taxed at auction regardless of prior payments.
If approved, this policy change could significantly benefit car buyers in Pakistan by offering more affordable and diverse options in the used car market.
Budget 2025-26: Expected cut in car prices in Pakistan from July 2025
