Finance Minister Aurangzeb chairs meeting virtually; 40% duty imposed until June 2026, gradual reduction planned
Islamabad, September 24, 2025 — The Economic Coordination Committee (ECC) of the Cabinet has given the green light for the commercial import of used vehicles, introducing a major shift in Pakistan’s automobile import policy. The decision was made at an ECC meeting chaired virtually by Finance Minister Senator Muhammad Aurangzeb, who joined the session from New York.
The ECC resolved to amend the Import Policy Order 2022, initially allowing imports of vehicles up to five years old until June 30, 2026, after which the age restriction will be lifted. Imports will remain subject to strict environmental and safety standards.
To regulate inflows, the Committee approved the imposition of a 40 percent Regulatory Duty (RD) on such imports in addition to existing customs duties. This duty will apply until June 2026 and will then be reduced by 10 percentage points annually, reaching zero by 2029-30, in accordance with the Tariff Policy Board’s roadmap.
Separately, the ECC sanctioned Rs 800 million as a Technical Supplementary Grant for the Pakistan Virtual Asset Regulatory Authority (PVARA), tasked with developing a regulatory framework for the country’s virtual assets sector.
The meeting was attended by Petroleum Minister Ali Pervaiz Malik, National Food Security Minister Rana Tanveer Hussain, Power Minister Sardar Awais Ahmad Khan Leghari, as well as senior secretaries and officials from relevant ministries and regulatory bodies.
