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Used car prices in Pakistan may drop significantly after the federal budget 2025-26, if proposed reductions in import duties and age limits for used vehicle imports are approved.
According to Haji Muhammad Shehzad, Chairman of the All Pakistan Motor Dealers Association (APMDA), the government is considering raising the import age limit from three to five years.
This change aligns with Pakistan’s agreement with the International Monetary Fund (IMF) to ease import restrictions and support consumer-friendly policies amid economic challenges.
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Shehzad stated that current import duties, which range from 96% to 475%, could be reduced by 20% annually over five years, making imported cars more affordable.
A five-year-old Japanese vehicle costs nearly half that of a three-year-old model, he explained, suggesting that such imports could lower car prices by Rs 500,000 to Rs 1 million.
Prices of smaller cars may fall below Rs 2 million, offering greater access to personal vehicles for lower and middle-income consumers across the country.
The APMDA estimates that vehicle imports could increase to 70,000 – 80,000 units next year, up from 30,000 this year, driving both competition and government tax revenue. Analysts say these changes would create a more competitive used car market, offering consumers better variety and pricing in the coming months.
