The federal government has fulfilled a major condition ahead of the arrival of the International Monetary Fund (IMF) mission by immediately allowing the commercial import of old vehicles.
The IMF had set a deadline of September 30 for the removal of all restrictions in this sector.
Officials confirmed that initially, the import of five-year-old vehicles will be permitted until June 30, 2026. Importers will face a 40 percent additional tax compared to new vehicles, alongside customs duty, additional customs duty, and regulatory duty.
After July 1, 2026, the age limit for imported vehicles will be removed altogether. The duty on old vehicles will then be gradually reduced by 10 percent each year until FY 2029-30.
Policy amendments and standards
The decision comes through an amendment to the Import Policy Order 2022, which previously allowed only limited categories of old vehicles such as bulletproof cars, armored vans, ambulances, firefighting trucks, and security vehicles.
Now, under the revised framework, commercial imports of older vehicles are allowed, but subject to environmental and safety standards.
