Cheapest city to buy a car in Pakistan is the beautiful Swat Valley; a hidden automotive economy is thriving. One can find luxury cars worth billions of rupees that are openly advertised for sale regardless of not being cleared by customs authorities.
These NCP (non-custom paid) cars are smuggled from Japan and Dubai into the country through Afghanistan and Chaman and sold for less than their actual market price. In Swat and nearby regions like Malakand, Kalam, and Dir, they sold these non-custom-paid vehicles at high levels in these areas. Famous brands such as Toyota, Range Rover, Land Cruiser, and Prado are displayed in local showrooms
For instance, a Toyota Crown 2019 sells for Rs.7.5 million, which is less than a quarter of its actual price if legally imported and taxed. This noticeable difference in prices is because of a lack of import duties and registration taxes. For buyers, the proposal is clear: a luxury car at a lowered price is enough to lure them; only a few can resist. However, even with affordability came legal hardships that complicate the ownership.
These cars enter Pakistan through the unsafe borders of Afghanistan, Balochistan, and Chaman, avoiding official customs routes. Once they reached Swat, they displayed them in polished showrooms and lured buyers not only from KPK but also from other provinces. Despite being high in demand, many buyers still remain cautious. Because of the legal value of these NCP vehicles, it means they cannot drive the car in the major and famous areas of the country due to federal restrictions.
The stakeholder community and dealers in Swat now suggest that NCP vehicles could give major economic benefits. They argue that formalizing this sector would enhance revenues, lower inflationary pressure and create job opportunities in these neglected areas. Each owner of showrooms said that these NCP vehicles are worth hundreds of millions of rupees. But on the contrary, such wealth is concentrated in assumptions. Traders also explain that these businesses often represent combined funds from investors from different families and partners.
The existence of this flourishing market highlights a huge policy gap. Many locals are requesting the federal government to rethink its stance on NCP vehicles. They argue that legalizing and taxing them could normalize a shadow economy while giving relief to citizens searching for affordable transport.
As Pakistan struggled with economic challenges, the situations in Swat brought attention to tension between affordability, opportunity, regulation, and a great mass that policymakers cannot ignore anymore.
