In a move that could bring significant relief to car buyers, the All Pakistan Motor Dealers Association (APMDA) Chairman H.M. Shehzad has expressed optimism that the upcoming federal budget will include major changes in used car import policy—changes that may slash prices of small vehicles by Rs 500,000 to Rs 1 million.
Speaking exclusively to private TV channel, Shehzad revealed that the government is considering lowering heavy duties on imported used vehicles and extending the age limit from the current three years to five years. If implemented, this would enable consumers to purchase high-quality Japanese cars for under Rs 2 million.
“Currently, the duties on imported vehicles range from 96% to a staggering 475%,” Shehzad explained. “The government, under an agreement with the International Monetary Fund (IMF), has committed to gradually reduce these taxes over the next five years by 20% annually.”
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He emphasized that a five-year-old vehicle in Japan costs almost half as much as a three-year-old model. For instance, a car currently priced at $8,000 (three years old) could be available for just $3,500 to $4,000 if it’s five years old. That’s where the savings for Pakistani consumers will come from—right at the heart of the revised used car import policy.
Shehzad believes that by implementing these measures, not only will car prices drop significantly, but the monopoly of local assemblers will also be challenged. “Right now, the smallest locally assembled car costs Rs 3.1 million,” he noted. “In India, a similar model is available for just INR 375,000. Even if we adjust for currency differences, it still amounts to only around Rs 1.3 million in Pakistan.”
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The proposed changes could allow Pakistanis to own better-quality imported vehicles at a fraction of the current cost. “If duties are relaxed and the age limit is extended, people will be able to buy a reliable Japanese car for less than Rs 2 million,” he added.
According to Shehzad, if the IMF-backed measures are adopted in the budget, the annual import of used vehicles could rise from the current 30,000 units to as high as 70,000–80,000 units. This increase in imports would also boost the government’s revenue by up to 70%.
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“The government stands to benefit in terms of revenue, the people will gain access to affordable and quality vehicles, and local assemblers will be forced to improve their standards,” Shehzad explained. “The move will enhance competition in the market, pushing local manufacturers toward real localization and better manufacturing practices.”
He concluded that implementing the used car import policy reforms will mark a positive step for Pakistan’s auto industry, its people, and the economy as a whole.
