CarAdvisers Insight

According to CarAdvisers' market analysis, the biggest winner under the new policy is vehicle quality rather than vehicle affordability.

The strengthened verification process and restrictions on lower auction grades are likely to improve consumer confidence by reducing the number of accident-repaired and poor-condition imports entering Pakistan. However, because cleaner Japanese vehicles cost more at source, buyers should not automatically expect cheaper prices for imported 660cc to 1000cc cars.

Instead, consumers should focus on verified auction sheets, mileage, service history, and overall condition rather than choosing a vehicle solely based on price.

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Final Verdict

The latest notification represents a significant shift toward higher-quality imported vehicles rather than lower-cost imports. While the one-time PSI exemption may simplify customs processing for eligible shipments, the simultaneous ban on lower-grade Japanese auction vehicles changes the economics of the import market.

For genuine buyers, this is likely to result in cleaner, safer, and better-maintained vehicles. However, the higher acquisition cost of Grade 3.5 and above vehicles means many imported kei cars and compact hatchbacks may become more expensive instead of cheaper.

FAQs

Will imported 660cc cars become cheaper?

Not necessarily. Cleaner auction-grade vehicles generally cost more in Japan, which may offset any savings from the PSI exemption.

Which Japanese auction grades are no longer allowed?

Grade 2, Grade 3, Grade R, and Grade RA vehicles are not eligible for customs clearance under the notification.

Does the exemption apply to all imported vehicles?

No. It is a one-time exemption for eligible vehicles shipped between 16 January and 9 March 2026 under the Gift and Transfer of Residence schemes.

What should buyers check before purchasing an imported car?

Verify the auction grade, original auction sheet, mileage, inspection history, and accident record.

Do you believe Pakistan's new import policy will improve the quality of imported cars enough to justify potentially higher prices?

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