IMF Allows Import of Older Vehicles in Pakistan With New Duty Structure

The International Monetary Fund (IMF) has approved Pakistan’s plan to allow the import of older vehicles under a new policy introduced by the Ministry of Commerce.

In a briefing to the Senate Standing Committee on Finance, ministry officials explained that starting September 2025, five-year-old vehicles will be allowed for import. However, these cars will carry an additional 40% duty.

Officials also shared that the current restriction on importing three-year-old vehicles for personal or commercial use has been removed.

From the fiscal year 2027, Pakistan will permit the import of vehicles up to seven years old. At that point, the extra duty will start to decrease by 10% each year until it is completely removed.

By FY 2027, the import duty on these vehicles will gradually return to the standard rate.