Will vehicle prices decrease from July 2025?

IMF allows import tariff reduction

Pakistan has seen an increase in vehicle prices over the past few years, but a major reason for this increase is the import of vehicles and heavy taxes and duties imposed at the local level, due to which the prices of vehicles have increased by up to 100 percent.
Although there has still been no reduction in the tax rate at the local level, the IMF has allowed Pakistan to reduce import tariffs, under which the government can reduce the tariff rate on vehicle imports between July 2025 and 2030.
On Monday, a senior official of Pakistan’s Federal Ministry of Finance confirmed on condition of anonymity that the IMF has allowed the reduction in import tariffs, but a decision on its implementation is yet to be taken.

The government will decide how much tariff to reduce according to its revenue needs and under this measure, only the tariff imposed on vehicles imported from foreign countries will be reduced. Experts believe that the IMF has allowed the government to reduce import tariffs, but it is premature to say whether the government will exercise this discretion or not, so there is no possibility of an immediate reduction in the price of vehicles.

According to senior officials of Pakistan’s Federal Ministry of Finance, during recent talks with the IMF, the international financial institution has demanded a reduction in trade barriers on imported vehicles, that is, it has proposed a reduction in the rate of duties imposed on them.
The IMF has emphasized a phased reduction in import tariffs over the next five years.
‘The IMF believes that the reduction in import tariffs will increase the number of vehicles in the local market and due to increased competition, there will also be possibilities of a reduction in vehicle prices.’
Under the IMF’s proposed tariff policy, the average tariff on vehicles will be reduced from the current level to 7.1%, which will increase the trend of importing vehicles from abroad.

Will vehicle prices decrease from July 2025?