The government is reportedly trying to explore a major policy shift that would allow the commercial import of used cars, transforming Pakistan’s long-standing import framework. The proposal has caused significant interest among car dealers and overseas Pakistanis, but also raised questions about its viability.

Currently, Pakistan allows the import of used cars only under three non-commercial schemes: Baggage, Gift, and Transfer of Residence (TR). These schemes are designed for overseas Pakistanis to bring in vehicles for their personal use. Under these schemes, customs duties are reduced through depreciation benefits, resulting in the affordability of imports

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The proposed policy would allow registered car dealers and showrooms to directly import used vehicles through different official banking channels, having no requirement for overseas Pakistani status. There is strong chance that this could open up market access, increase competition, and potentially stabilize car prices.

However, a major concern lies in the lack of depreciation benefits for commercial imports. Unlike personal-use schemes where duties are charged on a reduced value, commercial imports would be taxed at the vehicle’s full assessed value, leading to much higher costs.

Industry experts show concerns that unless this custom duty imbalance is addressed, the new policy might not achieve its intended goals. Dealers could simply avoid the commercial route in favor of existing schemes that offer lower costs.

Without aligning the customs duty structure with market realities, analysts fear the proposed policy may end up being more of a symbolic move than meaningful reform, failing to deliver the promised boost to the automotive sector.