Used car prices in Pakistan may decline significantly if proposals under review for the upcoming federal budget are approved, according to the All Pakistan Motor Dealers Association (APMDA).
Chairman Haji Muhammad Shehzad stated that the government is considering two key changes: reducing import duties on used vehicles and increasing the allowable age limit for imports from three to five years. These adjustments would align with Pakistan’s commitments under its agreement with the International Monetary Fund (IMF), aimed at easing import restrictions.
Currently, total duties on imported cars can range between 96% and 475%. The government is reportedly exploring a gradual reduction of 20% per year over five years. If implemented, this could lower the prices of used cars by Rs500,000 to Rs1 million, depending on the model and age.
Read More: Islamabad Hailstorm Damages Hundreds of Vehicles and Solar Panels
Shehzad noted that five-year-old Japanese vehicles cost nearly half as much as their three-year-old counterparts. Allowing their import could offer major savings for buyers, especially in the small car segment, where prices might fall below Rs2 million.
The APMDA also projected a surge in vehicle imports to 70,000–80,000 units next year, up from around 30,000 this year, which could enhance market competition and increase government revenue.