Pakistan Starts Registration for Used Car Importers under New Policy

The Government of Pakistan has commenced the registration process for companies intending to commercially import used vehicles up to five years old, pursuant to a policy framework approved by the federal cabinet.

According to official sources, the Engineering Development Board (EDB) has been mandated to oversee the registration of eligible importers and maintain a centralised database to ensure effective regulatory supervision of the sector.

Under the prescribed eligibility criteria, only entities incorporated in accordance with the Companies Act, 2017 will be permitted to participate in the import regime. Sole proprietorships and unregistered business structures have been expressly excluded to promote formalisation and regulatory compliance.

Eligible companies are required to explicitly include vehicle importation, systems, or parts as a principal business activity within their Memorandum and Articles of Association. Additionally, such entities must possess a valid National Tax Number (NTN) and maintain active sales tax registration with the Federal Board of Revenue.

All participating entities must obtain a registration certificate from the EDB prior to commencing operations. While minimum paid-up capital thresholds will be determined by the federal cabinet, applicants are required to disclose capital details as filed with the Securities and Exchange Commission of Pakistan.

The policy further mandates that all financial transactions, including overseas procurement and payment of applicable duties, be conducted exclusively through authorised banking channels to ensure transparency and traceability.

Importers are also obligated to establish or arrange comprehensive nationwide after-sales support infrastructure, including 3S (sales, service, and spare parts) facilities. These facilities must be equipped with adequately trained personnel, appropriate diagnostic tools, and sufficient inventories of genuine spare parts.

Companies must provide formal assurances regarding the availability of spare parts throughout the operational lifecycle of imported vehicles. Larger entities may, where applicable, utilise shared service networks to fulfil these obligations.

In addition, all imported vehicles will be subject to pre-shipment inspection conducted by EDB-accredited entities to verify compliance with government standards notified on September 30, 2025. A subsequent inspection will also be carried out upon arrival within Pakistan at designated facilities, with all associated costs to be borne by the importing company.