President of the All Pakistan Motor Dealers Association, HM Shehzad, has expressed hope that the upcoming federal budget will include provisions allowing the import of cars up to five years old, along with a reduction in duties.
According to media reports, he mentioned that the government may also permit the commercial import of used vehicles.
He expressed optimism that such measures could lead to a reduction of Rs 500,000 to Rs 1 million in the prices of used cars, potentially making them available for under Rs 2 million.
HM Shehzad pointed out that in Japan, a five-year-old car costs between $3,000 and $4,000, whereas a three-year-old car is priced around $8,000. In comparison, a locally assembled 660cc car in Pakistan costs over Rs 3 million.
He further said that allowing the import of five-year-old cars and reducing duties could increase used car imports from 30,000 to 80,000 units annually, thereby generating additional revenue for the government.
Last month, Pakistan had reached an agreement with the International Monetary Fund (IMF) to remove existing restrictions on the import of used vehicles, The News reported on Tuesday.
As part of this understanding, the tariff structure for used cars will be fixed at 40% above the corresponding rate for new vehicles in the upcoming fiscal year 2025-26 budget.
