Pakistan, Oct. 5 -- The federal government has announced a new policy allowing the commercial import of used passenger cars up to five years old, beginning in September 2025. The plan will remain in place until June 2026, with a regulatory duty of 40 percent in the first year. However, this duty will be reduced by 10 percent each year until phased out completely by FY30. Officials say this gradual approach is meant to balance affordability for consumers with protection for local automakers, while also ensuring that all imported vehicles meet strict safety and environmental standards.

Pakistan currently stands as an outlier in the region when it comes to used car imports. Annual imports average 34,000 units, compared to Thailand's 21,802,...