The All Pakistan Motor Dealers Association has expressed hope that the upcoming federal budget will bring major relief for used car buyers. Chairman H.M. Shehzad believes the government may reduce duties on used vehicle imports and extend the age limit from three to five years.
Speaking to Express News, Shehzad said Pakistan has assured the International Monetary Fund (IMF) it will gradually lower high duties and taxes on imported used cars over the next five years. He added that either customs duty or sales tax will be applied—not both—making the system more competitive.
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Currently, duties range between 96% and 475%. A 20% annual reduction is expected each year, which could bring down small car prices by Rs. 500,000 to Rs. 1 million. Shehzad said a five-year-old Japanese car costs nearly half of a three-year-old one. If approved, better quality vehicles may become available in Pakistan for under Rs. 2 million.
The association expects used car imports to rise to 70,000–80,000 units annually, up from the current 30,000. This, according to Shehzad, could boost government revenue by 70%.
He added that increased competition will push local assemblers to improve quality and reduce dependence on imported kits. The move could weaken their monopoly and benefit consumers with more affordable and reliable cars.
Shehzad called the expected reforms a win for consumers, the government, and the auto sector if the IMF’s recommendations are reflected in the upcoming budget.
