ISLAMABAD
\nIn a significant move, Pakistan has reached an agreement with the International Monetary Fund (IMF) to remove existing restrictions on the import of used vehicles. As part of this understanding, the tariff structure for used cars will be fixed at 40% above the corresponding rate for new vehicles in the upcoming fiscal year 2025-26 budget.
\nAccording to the agreed roadmap, which will be incorporated into the newly envisaged National Tariff Policy (NTP) for 2025-30, this initial 40% premium will be progressively reduced by 10 percentage points each year, ultimately reaching zero by the year 2030.
\n\u201cFor FY26, the tariff rates, including Custom Duty, Additional Customs duty, and Regulatory Duty for used vehicles will initially be set 40 per cent above the corresponding rate for new vehicles, with this premium to be reduced by 10 percentage points per year, to reach zero by 2030.\u201d
\nThe commitment to ease restrictions on used vehicle imports aligns with Pakistan\u2019s broader pledge to the IMF to substantially reduce barriers to international trade. This liberalisation is expected to be implemented through both the new NTP and the auto policy.
\nThe new NTP for 2025-30 will come into effect on July 1, 2025, after being incorporated into the Finance Act for FY26. The NTP envisages substantial tariff reductions and simplification of the customs regime, including by phasing out all additional customs duties (ACDs), reducing all regulatory duties (RDs) by 80%, and reforming the 5th Schedule to the Customs Act.
\n\u201cTogether, these measures under the NTP will result in a gradual reduction in the weighted average applied tariff from 10.6 per cent in FY25 to 7.4 per cent by FY30,\u201d stated the IMF staff report on Pakistan.Going forward, Pakistan committed that it will avoid introducing any new RDs. <\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD In a significant move, Pakistan has reached an agreement with the International Monetary Fund (IMF) to remove existing restrictions on the import of used vehicles. As part of this understanding, the tariff structure for used cars will be fixed at 40% above the corresponding rate for new vehicles in the upcoming fiscal year 2025-26 […]<\/p>\n","protected":false},"author":2,"featured_media":280206,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-479717","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-news"},"yoast_head":"\n