How to Import a Used Car to Pakistan in 2026: Age Limit, Duty and Schemes

An overseas Pakistani can still import a used car, but only under two schemes now: the Gift scheme and Transfer of Residence. The Personal Baggage scheme for used cars was abolished in January 2026. A car must be no more than three years old, and reports on the new rules put the gap between imports at 850 days.

On 24 September 2026 we went through the Federal Board of Revenue (FBR) vehicle import page, FBR's import brochure and the Pakistan Bureau of Statistics (PBS) import table. When we tried to open the Ministry of Commerce website, which publishes the import rules, it stopped us at a security check. So we could not read the January 2026 order itself, and we mark those changes as reported.

Car imports rose sharply in July and August 2026

Pakistan imported $81.5 million of fully built motor cars in July and August 2026, up from $58.7 million a year earlier. These figures are in the PBS August 2026 import table, which we downloaded. That is a rise of about 39 per cent, new and used cars together.

News reports on 24 September 2026 put the rise at 36 per cent. The small gap may come from PBS revising its numbers. The direction is the same either way.

The month split matters more. July alone was $57.4 million. August fell back to $24.1 million, slightly below August 2025. So the jump was one very large month, not a steady climb.

It has also been reported that about 3,200 used cars came in during July and August, and that Chinese companies brought in 1,500 to 2,000 new electric and hybrid cars a month. The same report says nearly all used cars came through the Gift scheme: 1,876 of 1,938 in July. PBS does not publish units by scheme, so treat those counts as unconfirmed.

Two schemes remain for overseas Pakistanis

Used cars cannot come into Pakistan in the normal way. The law makes an exception for Pakistanis living abroad, through schemes listed in Appendix E of the Import Policy Order. After January 2026, only the Gift and Transfer of Residence schemes still cover used cars.

The eligibility, stay abroad, age and family rules come from FBR's brochure. The brochure dates from June 2020, and FBR's live vehicle page still lists the old Personal Baggage scheme and the old two year gap. So FBR's pages have not caught up with the January 2026 changes. No report we saw says the 700 day stay rule changed, but we could not read the new order itself.

Students who get money from Pakistan, and family members abroad who do not earn, are not eligible. FBR states this on its vehicle page.

The duty must be paid from foreign exchange. Under SRO 52(I)/2019, the money must come from the sender's own account abroad. It goes into the sender's account in Pakistan, or into a family member's account if the sender has none. A bank encashment certificate proves the conversion.

If you live abroad on a foreign passport, check your NICOP or Pakistan Origin Card first. The rules for NICOP and POC holders changed in July 2026, and customs will want the original card at clearance.

The January 2026 changes made the schemes stricter

The Ministry of Commerce issued SRO 61(I)/2026 on 15 January 2026, according to news reports. We could not open the order on the ministry's site, so treat its terms as reported. It closed Personal Baggage for used cars, lengthened the gap between imports, banned resale for a year and applied commercial safety standards to both remaining schemes.

1. Personal Baggage closed. It was reported that 99 per cent of used cars had come through this scheme before.
2. 850 days between imports. The gap was 700 days. It counts from the date the Goods Declaration (GD), the customs entry for your last car, was filed.
3. No transfer for one year. The car must stay in the importer's or recipient's name for 12 months.
4. Same country rule. Under Transfer of Residence, the car must come from the country where you lived.
5. Pre-shipment inspection. The car must pass an inspection before it leaves the exporting country. News reports in June 2026 said cars graded below average at auction, or repaired after a major accident, will not qualify.

The same June reports described a one time exemption from the inspection rule for cars shipped on bills of lading dated 16 January to 9 March 2026. That window has closed.

Commercial used car imports are allowed with extra duty

A trader can now import used cars commercially, without any overseas scheme. News reports say the Ministry of Commerce issued SRO 1895(I)/2025 on 30 September 2025. We could not read it on the ministry's site. As reported, it allowed used vehicles under five years old, with a 40 per cent regulatory duty on top of normal duties.

Regulatory duty is an extra import tax the government sets by order, on top of normal customs duty. Under the 2025 plan, the 40 per cent rate ran until 30 June 2026. It was then meant to fall by 10 points a year, reaching zero in 2029-30. The same plan said the five year age limit would end after June 2026. These terms are also reported, not read by us in the order.

That is what was planned. On 20 June 2026, the Commerce Secretary told a National Assembly committee the duty would fall to 30 per cent in 2026-27 and the age limit would go, according to news reports of the meeting. We could not find a notified order that confirms either change, so treat both as reported until a customs agent confirms the rate on your GD.

Duty is worked out in five parts

Import duty on a car is not one tax. It is customs duty, additional customs duty, regulatory duty, sales tax and withholding income tax, added together. The total depends on engine size, age, value and whether the car is new, used, hybrid or electric.

We are not printing a total duty figure, because we could not read a current rate schedule for 2026-27. FBR's brochure explains the method, and the method has not changed as often as the rates.

• Start with the value. Customs takes the car's price at manufacture, adds freight and insurance, and adds 1 per cent landing charges. If there is no insurance memo, 1 per cent is added for insurance.
• Allow for age. For a used car under heading 87.03, customs reduces the value by 1 per cent for each full month since 1 January after the year of manufacture, up to 60 per cent.
• Use a valuation ruling. Where customs has issued a valuation ruling for the model, that value is used. A valuation ruling is an official price list for imported goods.
• Apply the rates. Each duty and tax is charged at the rate in force on the day the GD is filed.

FBR's live page still shows a fixed dollar table for small Asian cars. It lists US$ 4,800 for up to 800cc and US$ 6,000 for 801cc to 1000cc, from a 2005 order. The same page also still shows the closed baggage scheme. Do not budget on that table without a customs agent checking it.

Hybrids and electric cars are taxed differently, and the sales tax on hybrids went to 25 per cent on 1 July 2026 when the old hybrid car tax concession expired. Ask for the exact rate before you pay for any hybrid abroad.

Import a used car to Pakistan in eight steps

The process runs from checking your own eligibility abroad to picking up the car at Karachi port. Most importers use a licensed customs agent to file the GD. The agent must file within 20 days of the ship arriving, or daily late filing penalties start from 1 October 2026 (reported).

1. Check your eligibility. Count your days abroad and the days since your last GD. Both must meet the limits.
2. Pick a car that is three years old or newer. Count the age from the year of manufacture, not the year of first registration.
3. Verify the auction record. For a Japanese car, check the auction sheet before you pay. The auction sheet check catches rolled back mileage and hidden accident damage.
4. Book the pre-shipment inspection. Without the certificate, the car cannot be cleared under either scheme.
5. Collect the documents. Export certificate, purchase receipt, bill of lading, an attested passport or POC copy, and the recipient's CNIC for a gift.
6. Send the duty money from abroad. Keep the bank encashment certificate.
7. File the GD on the Pakistan Single Window. Your agent files it. If you file yourself, you need a PSW account, and PSW biometric verification can now be done in NADRA's PakID app.
8. Pay, pass inspection and collect. Customs checks the car against the documents. Remove it within five days of assessment to avoid charges.

Register the car with Excise after clearance

A cleared car still has no number plate. You register it with the Excise and Taxation department of your province, using the GD, the bill of lading and the customs import permission. In Punjab, registration costs 1 to 4 per cent of the car's value.

Excise and Taxation Punjab lists these documents for an imported vehicle registered in the importer's name:

• Form F, the registration application
• A copy of the owner's CNIC
• A copy of the import permission issued by Customs
• The duplicate GD in original, showing all duties paid
• A copy of the bill of lading
• Payment of the registration fee, number plate fee and other taxes

Punjab charges 1 per cent of value for a car up to 1000cc, 2 per cent up to 2000cc and 4 per cent above that. You may also owe advance tax at registration under the income tax law, and after that you pay token tax every year. Sindh, Khyber Pakhtunkhwa and Islamabad set their own rates.

Common mistakes cost importers money

Most losses come from four errors: a car one year too old, an import inside the 850 day gap, duty sent from a Pakistani account, and a late GD. Each can leave a car stuck at the port.

• Trusting old guides. Many pages still describe Personal Baggage and a 700 day gap. So do FBR's own pages.
• Buying before inspection. A car with a low auction grade will not get the certificate.
• Selling in the first year. The transfer ban means a buyer cannot register it in their name.
• Using a local account for duty. The remittance must start abroad.
• Letting the ship arrive first. Late GD penalties run daily, and port storage adds more.

Common questions

Can I still import a car under the Personal Baggage scheme?

No, not a used car. Personal Baggage was closed for used cars in January 2026, according to reports on SRO 61(I)/2026. Gift and Transfer of Residence remain.

How old can an imported used car be?

Under the two schemes, a car can be at most three years old and other vehicles five years, according to FBR. Commercial imports were capped at under five years, with plans to lift the cap reported in June 2026.

How often can I send a car to Pakistan?

Once every 850 days, counted from your last GD, according to reports on SRO 61(I)/2026. It was 700 days before.

Can my brother in Pakistan pay the duty?

Only with money you sent from abroad. The duty must come from foreign remittance, shown by a bank encashment certificate.

Can I sell the car straight after it arrives?

No. A car imported under either scheme cannot be transferred for one year from import, according to reports on the January 2026 order.

Where do I check the duty on my car?

Ask a licensed customs agent for the rate on the day of filing. FBR's valuation rulings and tariff set it, and rates change each budget.

Last checked and sources

Last checked 24 September 2026. We read the FBR vehicle import page and FBR's June 2020 import of vehicles brochure for the eligibility rules, the three year age limit, the family definition, the foreign remittance rule under SRO 52(I)/2019 and the valuation method. We downloaded the PBS August 2026 import table for the car import values, and read the Excise and Taxation Punjab registration page for documents and rates. The Ministry of Commerce site blocked us, so SRO 61(I)/2026 and SRO 1895(I)/2025 rest on news reports. The June 2026 plan to cut the regulatory duty to 30 per cent and end the age limit also rests on news reports. Nothing here is legal or tax advice.