Pakistan's government has resumed normal used vehicle import procedures following a period of restricted foreign exchange allocation, providing relief to the country's active Japanese car import sector.
Pakistan's used vehicle import sector has received welcome news as the government has fully normalised foreign exchange allocation for vehicle imports, following a period in 2024–2025 during which dollar shortages severely constrained the ability of importers to settle payments for Japanese vehicles.
Background
Pakistan has historically been one of the top five importers of Japanese used vehicles globally. At its peak, the country was importing over 50,000 Japanese used vehicles annually. However, a balance of payments crisis beginning in 2023 led to severe import restrictions, with foreign exchange for vehicle imports either unavailable or heavily rationed through the State Bank of Pakistan.
Normalisation in 2026
With Pakistan's IMF programme back on track and foreign exchange reserves partially rebuilt, the State Bank has restored normal LC (Letter of Credit) processing for vehicle imports. Industry bodies including the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) have confirmed that member importers are actively resuming orders from Japan.
Most Demanded Models
Pakistani buyers have shown particular demand for:
- Toyota Corolla (Japanese domestic variants) — preferred over locally assembled versions for their quality and fuel efficiency
- Honda Vezel / HR-V Hybrid — extremely popular premium compact SUV
- Toyota Aqua — ideal for urban driving in Karachi, Lahore and Islamabad
- Suzuki Wagon R (Japan) — the Japanese domestic variant is significantly superior to the local assembly version
Important: Right-Hand Drive Only
Pakistan operates on right-hand traffic, requiring right-hand drive (RHD) vehicles — the same configuration produced for Japan's domestic market. This makes Japan the natural source country for Pakistani vehicle imports.
