Govt mulls banning import of used vehicles

ISLAMABAD: The government is mulling the imposition of strict prohibitions on the import of three-year-old used vehicles by overseas Pakistanis, aimed at preventing the misuse of this facility, ARY News reported. 

An inter-ministerial meeting, headed by Federal Commerce Minister Jam Kamal, exchanged views on the matter.

Representatives of the Pakistan Automotive Manufacturers Association (PAMA) and the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) also attended the meeting.

The Economic Coordination Committee (ECC) had earlier instructed the Commerce Division to consult with stakeholders and review its suggestion to amend the procedure for importing vehicles under the gift schemes described in the Import Policy Order 2022.

The meeting agreed to further tighten these schemes, limiting the eligibility of genuine overseas Pakistanis.

Under the suggested changes, imported vehicles must have been registered in the name of an overseas Pakistani for at least six months before the vehicle leaves its resident country.

On the other hand, overseas Pakistanis have urged leniency in the matter. The Industries Ministry also stressed strict control over the import of such vehicles, citing large-scale misuse by trading importers using foreign identities.

The PAAPAM expressed concerns that the import of used vehicles is harming the demand for locally produced auto parts, while it emphasized that the government should discourage the import of used vehicles.

Moreover, the Commerce Ministry is working on reviewing its recommendations, which will be presented to the ECC for final approval after the conclusion of the consultations.