Commercial import of used cars in Pakistan: rules for dealers (October 2026)

Yes, a business in Pakistan can commercially import used cars from Japan in October 2026. The route opened in September 2025 for cars under 5 years old, and since 1 July 2026 these imports pay a 30% regulatory duty on top of the normal duties. A new inspection and importer rule from 30 September 2026 is being challenged, so check it with your clearing agent before you ship.

This guide is for dealers and importers. If you are an overseas Pakistani bringing one car for yourself or your family, the Gift and Transfer of Residence rules are different; see the short version below.

What changed, in one table

Who can import commercially

Until September 2026, the Engineering Development Board’s code of conduct (14 April 2026) said only companies registered under the Companies Act 2017 could import, and that vehicle import had to be their main business. They also needed:

• a valid NTN and active filer status
• an EDB registration certificate before importing
• payment through banking channels
• a sales, service and spare-parts (3S) network
• a pre-shipment inspection and a post-shipment inspection at their own cost
• digital records by chassis number (VIN)

The EDB notification of 30 September 2026, as reported by PakWheels and TechJuice, widens this. Sole proprietors and partnership firms with a valid NTN or STN can now import, not only companies, and the minimum capital requirement was dropped. Importers still need banking-channel payments, proper records and a tie-up with an FBR-registered after-sales workshop. Cars must meet the UNECE WP.29 safety and emissions rules (brakes, seat belts, airbags, lights, tyres, emissions and more).

Disputed. On 1 October 2026 the FIA raided the EDB over this notification, and on 6 October PAMA asked for it to be suspended. We found no suspension or withdrawal as of 19 October 2026, and the notification itself is not on the EDB website. Ask your agent which rules customs is applying on the day you file.

The age limit

Commercial imports were opened for cars under 5 years old. When the government approved the plan in September 2025, Dawn reported that the age limit would be removed after 30 June 2026. We have not found any notification that actually removes it, and the draft Auto Policy 2026-31 that the Prime Minister approved in September 2026 still says “up to five years old”.

So in practice: plan on a car no more than 5 years old, and get your clearing agent to confirm before you buy. A Japanese car registered in 2021 is the edge case; your agent can tell you how customs counts the age for your shipping date.

What you pay in duty and tax

These rates are in force from 1 July 2026 under the Finance Act 2026 and the FBR notices dated 30 June 2026:

Sales tax and advance income tax are charged as well. Imported hybrids lost their concession on 30 June 2026 and now pay 25% sales tax, according to Profit. We could not confirm the current sales tax and advance tax rates for ordinary used cars from an official source, so ask your agent for those.

Under the National Tariff Policy, the commercial regulatory duty is meant to fall by 10 points a year, which would make it 20% from 1 July 2027. That is a plan, not a notified rate.

Inspection before shipping

A pre-shipment inspection is required. Under the 30 September 2026 notification, it must come from an internationally accredited inspection agency registered with PSQCA (Pakistan Standards and Quality Control Authority), and the same company’s office in Pakistan checks the documents again after the car arrives. The inspection certificate has to confirm, among other things, that the car has no accident history, the odometer has not been tampered with, the engine is sound, emissions are within limits, the airbags are present and the manufacturing date is verified.

There is no public PSQCA list of approved inspectors in Japan. Before you pay for an inspection, ask the inspector for its PSQCA registration and ask your agent whether customs is accepting it.

Documents you need

From Japan:

• the export certificate (the deregistration certificate issued by Japan’s Land Transport Bureau)
• the bill of lading
• the commercial invoice
• the pre-shipment inspection certificate
• the auction sheet

In Pakistan: your NTN (and STN), a goods declaration filed through PSW/WeBOC by a licensed customs agent, and proof the payment went through banking channels.

Not a dealer?

Almost all used cars arriving in Pakistan right now are not commercial imports. In September 2026, 2,238 of 2,276 used vehicles came in under the Gift scheme, according to Commerce Ministry figures reported by Bloom Pakistan.

The Personal Baggage scheme no longer covers used vehicles (SRO 61(I)/2026, January 2026). Overseas Pakistanis can still use the Gift and Transfer of Residence schemes, with these limits:

• cars no more than 3 years old
• one import every 850 days
• the car cannot be sold or transferred for one year after import
• a Transfer of Residence car must ship from the country you live in
• duty must be paid from money sent from abroad

Since June 2026, customs refuses Gift and Transfer of Residence cars whose auction sheet grades them Below Average, Poor, Repaired Accident or Minor Accident Repair.

What we do at Hana Motors

We bid at Japanese auctions for you, show you the translated auction sheet before you pay anything, arrange the inspection and shipping to Karachi, and send the documents to your clearing agent. Your agent handles customs on the Pakistan side. If you do not have an agent, we can introduce one in Karachi.