Non-Resident Pakistanis Can Import Used Cars in Pakistan | A Complete Guide

Import Used Cars

Non-Resident Pakistanis Can Import Used Cars in Pakistan – A Complete Guide

 

For thousands of Non-Resident Pakistanis (NRPs) living abroad, sending a car back home to family in Pakistan or even bringing one when relocating is an attractive option. With limited access to quality vehicles locally and high prices in the domestic market, importing a used car can be cost-effective and practical. However, the process involves strict government policies, duties, and documentation requirements that every NRP should understand before making a decision.

This guide covers everything you need to know about importing a used car into Pakistan as a Non-Resident Pakistani.

1- Who Can Import a Used Car in Pakistan?

The Government of Pakistan allows only overseas Pakistanis (NRPs) to import used vehicles under specific schemes. A person qualifies if they have:

  • Lived abroad for at least 180 days (within the last 7 months).

  • A valid Pakistan Origin Card (POC), NICOP, or CNIC.

  • Not imported another car in the last two years.

These schemes are specifically designed to facilitate NRPs and their families in Pakistan.

2- Available Import Schemes

There are three official schemes through which NRPs can import used cars:

a) Personal Baggage Scheme

  • For NRPs who are returning permanently or temporarily.

  • Vehicle must be registered in the importer’s name abroad for at least 60 days before arrival in Pakistan.

b) Gift Scheme

  • Allows an NRP to send a vehicle as a gift to a family member in Pakistan.

  • The recipient must be a blood relative (parents, spouse, siblings, or children).

c) Transfer of Residence Scheme (TRS)

  • For NRPs moving back to Pakistan permanently.

  • Must have stayed abroad for at least 700 days during the past 3 years.

3- Car Import Rules & Conditions

  • Age Limit of Vehicles:

    • Cars: Up to 3 years old.

    • SUVs, 4x4s, and commercial vehicles: Up to 5 years old.

  • Right-Hand Drive (RHD) only: Pakistan does not allow left-hand drive imports.

  • Customs Duty & Taxes: Duties are payable in US Dollars, and vary depending on engine capacity (cc).

    • 1,000cc and below: Lower duties.

    • 1,001cc–1,800cc: Medium to high duties.

    • Above 1,800cc: Very high duties, sometimes making it costlier than buying locally.

  • Depreciation Allowance: Up to 60% depreciation is allowed on duty calculations (for used vehicles).

4- Required Documents

To import a car successfully, NRPs must provide:

  • Original Passport (with valid visa/residence permit).

  • CNIC / NICOP / POC.

  • Proof of stay abroad (air tickets, entry/exit stamps).

  • Original Registration Book of the vehicle.

  • Purchase invoice of the vehicle.

  • Bill of Lading (B/L) – showing vehicle was shipped within 60 days of importer’s last arrival in Pakistan.

  • Authorization letter (if using a customs agent).

5- Import Procedure Step-by-Step

  1. Select Vehicle Abroad – Ensure it meets Pakistan’s import eligibility.

  2. Arrange Shipping – Usually through sea cargo (Port Qasim or Karachi Port).

  3. Obtain Bill of Lading – Must be in the importer’s name.

  4. File Import Documents with Pakistan Customs.

  5. Customs Clearance – Pay duties & taxes as assessed.

  6. Release & Registration – Get the car registered with Excise & Taxation Office in your city.

6- Advantages & Challenges

Advantages

✔ Better quality cars compared to local options.
✔ Access to hybrid, electric, and rare models.
✔ NRPs can benefit their families through the Gift Scheme.

Challenges

✘ High customs duties often reduce cost savings.
✘ Complex documentation process.
✘ Risk of fraud if dealing with unreliable shipping agents.

7- Tips for NRPs Importing Cars

  • Always verify car age and eligibility before purchase.

  • Use only registered customs clearing agents.

  • Calculate total landed cost (car price + shipping + duties + registration) before deciding.

  • Keep all original documents safe for clearance.

Final Thoughts

Importing a used car into Pakistan as a Non-Resident Pakistani is possible but requires careful planning. While the government has provided Personal Baggage, Gift, and Transfer of Residence Schemes to facilitate NRPs, the high customs duties often become the deciding factor.

For those who plan wisely, importing a used car can still be a smart option—especially for hybrids, small cars, and unique models not readily available in the local market.

Pro Tip: Always check the latest Pakistan Customs rules before starting the process, as policies are subject to change.

Duty & Tax Rates for Importing Used Cars in Pakistan (2025 Updates)

Here are the main duty/tax components, and recent changes:

Tax/Duty Type Approx Rate / Change Details / Notes
Regulatory Duty (RD) Around 10% for cars below 1800cc/hybrids, up from ~15% before.
Additional Customs Duty (ACD) Standardized around 6% for most imported vehicles.
Customs Duty + Other Levies Very high for luxury / large-engine cars: e.g. for 1801-3000cc & above, overall duty incidence (including customs, RD, ACD, etc.) can be 350-400%+ of CIF in many cases.
Sales Tax 17% on the sum of CIF + customs duties + regulatory duty etc.
Federal Excise Duty (FED) Variable depending on engine size / luxury class. Sometimes 5-10% or more.
Income Tax / Withholding Tax Usually ~6% on value after duties etc.
40% Import Tax (new on used cars as of late 2025-September) The government has announced a 40% additional duty/tax on commercial imports of used vehicles starting around September 2025. This is intended to protect local industry.

How Duties Add Up — Sample Breakdown

To illustrate, here’s a rough sketch of how total import cost is built up:

  1. CIF value (Cost + Insurance + Freight)

    • Customs Duty (varies by cc, type of vehicle)

    • Regulatory Duty (RD)

    • Additional Customs Duty (ACD)

    • Sales Tax (on CIF + duties)

    • Federal Excise Duty (if applicable, large engine / luxury)

    • Withholding / Income Tax

So a luxury SUV with an engine large enough may easily face 300-400%+ total tax burden of the CIF value, meaning the landed cost could be 3-5× the CIF price.

Recent Policy Changes to Watch

  • Regulatory Duty for many classes (especially hybrids / <1800cc) has been lowered.

  • A new 40% import tax (for used vehicles imported commercially) is being imposed from ~September 2025, to be phased down over subsequent years.

  • Age, condition, accident history, etc., are under stricter scrutiny. Accidented cars may be banned.

 

What the FBR & Govt Announced Recently

Here are confirmed policy updates relevant to used car import (NRPs etc.):

  • From September 1, 2025, commercial import of up to 5-year-old used vehicles is allowed, but with an additional 40% import tariff for FY 2025-26.

  • For NRPs under the baggage scheme, the age limit of 3 years remains (i.e. no change announced to baggage scheme’s age limit yet).

  • FBR reduced regulatory duties (RD) and additional customs duties (ACD) on many items (including vehicles), via SROs issued effective July 1, 2025.

  • Under the latest customs tariff rationalization, the RD and ACD rates are being phased down.

What is Known: Duty Incidence by CC Brackets (Estimated / Observed)

While the exact schedule (cd + rd + acd + all levies) by fixed cc bracket for used car imports for NRPs is not neatly published in one place, there are observed effective duty incidence figures reported by auto-market sources (SpotMV) for 2025. These are useful as estimates.

Here are such observed/approximate total duty burdens (Customs + RD + ACD + other taxes) for non-hybrid, used cars by cc bracket:

Engine Size (cc) Approx Total Duty Incidence (2024) Approx Total Duty Incidence (2025) Reduction (~)
1301-1500 cc ~ 174% ~ 165% ~ 5%
1501-1800 cc ~ 197% ~ 188% ~ 4.6%
1801-3000 cc ~ 429% ~ 361% ~ 15.8%
Above 3000 cc ~ 470% ~ 401% ~ 14.7%

These incidence figures include all* major taxes/levies (customs, regulatory duty, sales tax, etc.) combined, so the “duty” here means “how much extra / percent over CIF you have to pay in taxes etc.” Not just one specific duty like customs or RD.

What is Not Public Yet / Unclear

  • The exact Customs Duty (CD) percentage by cc bracket for used car imports under NRP schemes is not clearly published in a schedule I found.

  • The exact RD + ACD broken down by cc bracket for NRPs (especially under baggage, gift, TRS) is not fully available in public FBR documentation (so far) for 2025.

  • Whether NRPs under baggage scheme get the same additional 40% import tariff as commercial imports for 5-year-old cars is disputed / was being argued (some reports suggest the extra tariff should not apply to baggage scheme for used cars).

Tentative Table: What You Might Use As Guide

Based on what is known, here is a tentative table you can include in your blog post with disclaimers, so readers have approximate guidance. You should advise them to check with FBR or customs agent for exact as per their vehicle type / age / scheme.

CC Bracket Approx Total Duty & Tax Burden (2025) for Used Non-Hybrid Cars Notes / Key Levies Included
Up to ~ 1300 cc Likely less (below ~160-170%) Includes customs duties, regulatory duty, sales tax etc.
1301-1500 cc ~ 165% above CIF Duties + RD + ACD + other taxes
1501-1800 cc ~ 188% above CIF Higher levies due to larger engine
1801-3000 cc ~ 361% above CIF Much higher rates, luxury taxes etc.
Above 3000 cc ~ 401% above CIF Even more due to high engine, luxury, top tax slabs

What You Should Do to Get the Exact Rates

Since there’s some ambiguity and variation depending on:

  • Whether car is imported under baggage, gift, or transfer-of-residence scheme

  • Rate of depreciation applicable

  • Whether car is hybrid / electric etc.

  • Exact PCT code classification used by customs

You (for our readers) should:

  1. Check the latest Pakistan Customs Tariff FY document on FBR site.

  2. Use a customs duty calculator from a reliable automotive import-site which is updated with recent duty policy.

  3. Consult a licensed customs clearing agent for estimates for the specific vehicle, cc, age, and scheme.

 

Are you planning to import the used car to Pakistan?

Getting Started is Easy

Ready to simplify your shipping? Contact us today for a free consultation and a custom quote. Our team is ready to design a logistics plan that will save you time, reduce costs, and give you peace of mind.

Contact Us: