Used Cars Could Get Cheaper After Budget

Used car prices in Pakistan are expected to see a major drop if proposals in the upcoming federal budget go ahead, according to the All Pakistan Motor Dealers Association (APMDA). Chairman Haji Muhammad Shehzad said the government is likely to reduce import duties on used vehicles and increase the age limit for imports from three to five years. This would be in line with Pakistan’s agreement with the International Monetary Fund (IMF), which includes easing import restrictions. Shehzad explained that total duties on imported cars—currently ranging between 96% and 475%—could be cut by 20% each year over the next five years. If approved, this move could reduce used car prices by Rs. 500,000 to Rs. 1 million. He noted that a five-year-old Japanese car can cost nearly half the price of a three-year-old model, and bringing such vehicles into the market could help consumers save big. Small car prices, he added, might drop below Rs. 2 million. The APMDA chairman also claimed that imports could rise to 70,000–80,000 units next year, compared to 30,000 this year, boosting both competition and government revenue.