Govt opens registration for used car importers under new policy

The government has initiated the registration process for companies seeking to commercially import up to five-year-old used vehicles, in line with the policy approved by the federal cabinet, Business Recorder reported. 

Sources said the Engineering Development Board (EDB) has been assigned to register importers and maintain a database to ensure regulatory oversight of the sector.

Under the new criteria, only companies incorporated under the Companies Act, 2017, will be allowed to participate. Individual proprietorships and unregistered entities have been excluded to formalise the business.

Companies must clearly state vehicle import, systems or parts as their core business in their Memorandum and Articles of Association. They are also required to hold a valid National Tax Number and be active sales tax filers with the Federal Board of Revenue.

All importers will need to obtain a registration certificate from the EDB before starting operations. While minimum paid-up capital requirements will be set by the federal cabinet, firms must disclose capital details filed with the Securities and Exchange Commission of Pakistan.

The policy requires all transactions, including overseas purchases and duty payments, to be conducted through authorised banking channels to ensure financial transparency.

Importers will also be required to establish or arrange nationwide after-sales services, including 3S facilities covering sales, service and spare parts. These facilities must be equipped with trained staff, diagnostic equipment and adequate inventories of genuine parts.

Companies must provide written guarantees for the availability of spare parts throughout the vehicle lifecycle, while larger importers may operate shared service networks to meet these requirements.

Vehicles will be subject to pre-shipment inspection by EDB-accredited firms to ensure compliance with government standards notified on September 30, 2025. A second inspection will be conducted upon arrival in Pakistan at designated facilities, with costs borne by the importer.