New EDB Rules for Imported Used Cars

On 30 September 2026, the Engineering Development Board (EDB) issued a notification that tightens the rules on commercially imported used vehicles. It took effect immediately. Vehicles in the relevant categories must now meet UNECE WP-29 safety and environmental regulations, or an equivalent standard the EDB accepts, and each one must pass inspection both before it ships and after it lands.

This is the most detailed quality control Pakistan has applied to the commercial import channel so far. It is also narrower than the headlines make it sound, and buyers should understand both points.

Background

The government opened commercial imports of used vehicles up to five years old in September 2025, subject to an additional 40% duty. The EDB adopted a first set of WP-29 standards at the same time and required pre-shipment and post-shipment inspection.

Implementation has been uneven. In April 2026 the EDB published a code of conduct for importers covering registration, tax status and after-sales obligations. In June, the Senate Standing Committee on Finance recommended withdrawing the EDB’s import notification, arguing it would hurt business activity and government revenue.

The 30 September notification shows the EDB has gone the other way and tightened the requirements rather than relaxing them.

What the Standards Cover

WP-29 is the UN framework that many car-producing countries use to harmonise vehicle regulations. The areas covered by the notification include:

• brakes, steering and tyres
• seat belts, airbags and child restraint systems
• lighting
• crash protection
• emissions
• safety requirements specific to electric vehicles

In practice, most recent Japanese-market cars are already built to these standards. The more important changes are about the condition of each individual car and the paperwork that goes with it.

Two Inspections for Every Car

Each commercially imported used vehicle now needs a pre-shipment inspection certificate. It must come from an internationally accredited agency registered with PSQCA under S.R.O. 2443(I)/2025. The certificate has to confirm that the car:

• has no accident history
• has an original odometer that has not been tampered with
• has a sound engine
• is within emission and noise limits
• has no cracked glass
• has its required airbags
• has a verified manufacturing date
• is roadworthy

Once the car arrives in Pakistan, a local representative of the same inspection company checks it again and confirms the original certificate is genuine and accurate. The importer pays for this second check.

That second step matters most. Paperwork from Japan has long been easier to fake than the car itself, and the post-arrival check is meant to close that gap.

Stricter Requirements for Importers

The notification also tightens who can import commercially. An eligible importer can be a company, a proprietorship or a partnership, and must hold a valid sales tax registration or NTN. Where relevant, vehicle imports must be the business’s main activity.

Importers must also pay through regular banking channels and keep full records of every vehicle they bring in. They need tie-ups with FBR-registered workshops for after-sales service. The aim is to push the trade toward documented, traceable businesses and away from informal operators.

Where the Rules Stop

The notification applies to commercial imports. It sets no new requirements for cars that are already registered and on the road in Pakistan.

This limitation is significant. Most imported cars available in Lahore right now arrived years ago, many through personal baggage, gift or transfer of residence schemes. That includes Vitz, Aqua, Prius, Mira and Move units. None of them will be re-examined under the new rules.

Old problems in the imported used car market are still around. Fake auction sheets, rolled-back odometers and resprayed accident repairs are common in the existing stock, and any car that has had a few owners locally may have been through repairs no certificate records.

Effect on Prices and Supply

Inspection and compliance add cost to every commercially imported car, and importers will pass it on. Weaker operators may leave the market, which could reduce the supply of newly imported units for a while.

For buyers, freshly imported cars should come with better documentation, at a higher price. That makes older imported cars already in the country look more attractive by comparison, which is exactly where the risk is highest.

Checks Buyers Should Still Do

For a newly imported car, ask for the pre-shipment certificate and the post-shipment verification. A legitimate importer will have both ready.

For any imported car that is already registered here, the new rules offer no protection. Check the auction sheet, compare the odometer against the recorded mileage, and have the body and engine inspected by someone who has no interest in the sale.

Verify Before You Pay

Car Mandi checks auction sheets for PKR 1,500 and confirms the export grade and mileage against the car itself. The private inspection costs PKR 4,000 and covers bodywork, engine and electrics at your location in Lahore. For an imported car registered before these rules came in, these two checks give you the protection the new notification does not.

All regulatory details are as of 1 October 2026.