Pakistan used car import policy is under consideration as the government plans to allow the import of 5-year-old used vehicles for broader economic reforms aligned with suggestions from the IMF (International Monetary Fund).
The IMF (International Monetary Fund) proposed some suggestions to liberalize the auto sector. These proposals are being considered currently by economic managers. These proposal include
- Removing regulatory taxes on auto sector
- Lowering tariffs to below 10% on completely build-up unites (CBU)
- Reducing overall tariffs on automobiles to less than 10% within 5 years
- Permitting business to import vehicles for sales
The initiative aims to make the automobile sector more competitive and more open, leading to lower prices and a greater variety of vehicles available to customers.
Additionally, Pakistan now only allows, under specific schemes, the import of used cars up to 3 years old and SUVs up to 5 years old. The suggested policy would extend the imported vehicles’ age limits to 5 years across the world. The government insiders claim that this change will be introduced in the upcoming federal budget to meet the condition of the IMF (International Monetary Fund) for future financial support.
However , sources also informed us that easing the import restrictions and reducing the tariff could increase the import bills of the country and negatively affect local automobile manufacturers because of high competition from imported vehicles.
