ISLAMABAD: Just a day before the arrival of a review mission of the International Monetary Fund (IMF), the government on Wednesday formally allowed commercial import of used vehicles, starting with a 40 per cent additionalregulatory duty to be gradually phased out in four years.

The decision was taken at a meeting of the Economic Coordination Committee (ECC) of the federal cabinet preside d over by Finance Minister Muhammad Aurangzeb virtually from New York following Prime Minister Shehbaz Sharif`s meeting with IMF Managing Director.

There was little discussion on the proposal given Pakistan`s commitment with the IMF for removing quantitative restrictions on commercial import of used vehicles. `The ECC decided to amend relevant provisions of the Import Policy Order 2022 to allow the commercial import of used vehicles. Initially, only vehicles not older than five years will be permitted until June 30, 2026, after which the vehicle age limit shall standremoved,`anofficialannouncement said. The ECC further directed that such commercial importation would remain subject to strict compli-ance with prescribed environmental and safety standards.

The committee also approved the imposition of 40pc regulatory duty (RD), in addition to the existing customs duties, on the commercial import of used vehicles (less than five years old). This enhanced duty will remain applicable until June 30, 2026. Thereafter, the duty shall be reduced gradually by 10 percentage points per year, reaching zero by 2029-30, in line with the recommendations of the Tariff Policy Board (NTB).

The NTB, led by commerce minister had, finalised the proposal `in line with Pakistan`s commitmentsance with prescribed environmental and safety standards.

The committee also approved the imposition of 40pc regulatory duty (RD), in addition to the existing customs duties, on the commercial import of used vehicles (less than five years old). This enhanced duty will remain applicable until June 30, 2026. Thereafter, the duty shall be reduced gradually by 10 percentage points per year, reaching zero by 2029-30, in line with the recommendations of the Tariff Policy Board (NTB).

The NTB, led by commerce minister had, finalised the proposal `in line with Pakistan`s commitmentswith the IMF under the Extended Fund Facility (EFF). Under the decision, `used vehicles falling under PCT 8702, 8703, 8704 and 8711 initially not older than 5 years until June 30, 2026, and thereafter the vehicle age limit will be removed.

The commercial importation shall be allowed subject to compliance with the environmental and safety standards as notified by the Ministry of Industries and Production or by the concerned Ministries/ Divisions / Departments.

The ECC also approved allocation of Rs800 million supplementary grant to the newly created Pakistan Virtual Asset Regulatory Authority.