Cars likely to get cheaper in Pakistan after Budget 2025-26 – Check full details

As the 2025-26 budget draws near, there’s some good news for people looking to buy a car in Pakistan. The government is planning to make important changes in the auto policy that could help bring car prices down.

Right now, people in Pakistan can only import used cars that are up to 3 years old, and SUVs or big jeeps up to 5 years old.

But in the upcoming budget, the government may allow all types of used vehicles, including small cars, to be imported if they are up to 5 years old. This means buyers could get more choices and lower prices in the used car market.

Along with this, the government is also reviewing taxes and duties on imported cars, especially Completely Built-Up (CBU) units.

Discussions are underway to slowly reduce these duties to below 10% over the next five years, which could make imported cars more affordable for everyone.

Top Imported Cars in Pakistan

In the past, many people misused car import schemes like personal baggage, gift, and transfer of residence. To stop this, the government made rules under the Import Policy Order 2022.

Now, only overseas Pakistanis who have not imported, gifted, or received a vehicle in the last two years can use these schemes.

The Federal Board of Revenue (FBR) has also explained the tax rules for used cars sold in auctions. If a used car is still in good condition and tax was already paid when it was imported or bought locally, then no extra 18% sales tax will be charged. But if the car is damaged or unfit, the 18% tax will still apply at the time of auction.

If these new proposals are approved, they could be a big help for car buyers in Pakistan by offering cheaper prices and more variety in the used car market.

Many people are hoping the budget will bring positive changes for the auto industry and make cars more affordable for the general public.

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