Used car market of Pakistan

The growth of automobile sector is important for stabilizing the economy of a country. This sector is responsible for generating high revenue, employing to people. The automobile sector of Pakistan is not so developed, thus the country import large numbers of automobiles. There are only few automakers dominant automakers in the country, hence it results in not much competition and because of this the cost to consumers is generally high.


Pakistan, situated in the western part of Indian subcontinent is a major importer of second-hand cars from Japan. The local car market of Pakistan is flooded with used vehicles as they fall within the budget. Japanese used vehicles are popular in the nation as they are reliable, high on quality and safe to drive. Along with used vehicles, used parts are also imported in large scale in Pakistan from Japan. Generally used vehicles imported in the country are luxury cars as they fall in the range of 1300cc and above. For instance, in the year 2012, out of all cars imported in the country, 55% of the cars were in the 1300cc.

While importing a used vehicle in the country, importer should make sure that they are abiding by the country’s regulations. Used vehicles can be imported in Pakistan by Pakistani Nationals only under any of the following three schemes: Transfer of residence, Gift, Personal baggage. In addition, it is allowed to import only one vehicle under the special regime every two years. If the car is imported due to a transfer of residence, then the importer must have resided outside Pakistan for at least two years prior to the date of importation. The car may only qualify as a gift if it is for a parent, a son or daughter, a spouse or a sibling. Importation of right hand drive vehicles is allowed in Pakistan. Also the importation of vehicles which have been in use for over 5 years or more is allowed. Used vehicles imported in Pakistan through Karachi port.

Duties and Taxes:-
Used vehicles imported in the country are subjected to high import duties and taxes. Duties on used vehicles depends upon the engine size (in cc). Sales tax calculated is based on the 10% of (CIF+ import duty charged). The import tariff in the country is very high that has affected the import of high priced cars. Sometimes the duties reach as high as 150%.

If one is in the market for a used vehicle, the obvious place to go to is a Japanese used car market. Day by day the popularity and the market of Japanese used vehicles is increasing tremendously. Every day, thousands of used vehicles are exported from Japan to various countries across the world. Japanese vehicles are engineered properly and are safe to drive, that’s why Japanese cars operate well.


One thought on “Used car market of Pakistan

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