The Government has assured by the auto sector that commercial imports of used cars will not be misused due new measures.
The assurance was given by the two ministers in a meeting with delegation from the Pakistan Automotive Manufacturers Association (PAMA) and the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM).
The meeting was jointly chaired by the Commerce Minister Jam Kamal and the Special Assistant to Prime Minister on Industries Haroon Akhtar Khan.
The purpose of the meeting was to address the concerns by auto sector related to various schemes for vehicle imports by overseas Pakistanis.
“By introducing pre-shipment and post-shipment inspection systems and implementing strict quality control measures, the misuse of commercial import of used car would be effectively discouraged,” Mr Kamal said.
While the commerce ministry was in favour of used car imports with a focus on ensuring that genuine expatriates are facilitated through transparent and accountable mechanisms, the ministry of industries and production was opposing it – to protect the investments by the auto industry.
Mr Kamal highlighted that the pre-shipment and post-shipment inspection systems would be conducted by the Engineering Development Board (EDB) an attached department of the ministry of industries.
“By enforcing quality inspections and defining clear import rules, we aim to promote compliance and transparency while supporting Pakistan’s industrial growth,” he said.
The Commerce Minister shared that his ministry is formulating the proposals for amending the various schemes of importing used cars, where the possibility of commercial exploitation of the schemes will be minimised. It was ensured that the proposed steps would aim to enhance authenticity and curb unauthorised use of overseas import schemes.
He further added that an additional 40 percent regulatory duty on commercial used car imports has been imposed, which will gradually reduce each year to provide a balanced incentive structure for the local automotive industry while ensuring fair market dynamics.
The meeting also reviewed a proposal to harmonise the baggage, gift, and transfer of residence schemes. PAAPAM and PAMA officials were briefed that under the current framework, eligibility for the baggage scheme requires a six-month stay abroad.
The delegation proposed to standardise the eligibility period to maximum period across all three schemes, simplifying the regulatory process and ensuring uniformity.
The PAAPAM and PAMA representatives presented detailed suggestions on localisation, vendor development, tariff rationalisation, and research and development incentives.
While, Haroon Akhtar Khan said that both the trade bodies should share the proposals at the earliest over the upcoming Automobile Policy as the time is very short and Ministry of Industries is working to finalise it by November.
He reaffirmed that the Ministry’s priority is to facilitate local industry and manufacturers, helping the domestic sector become more competitive and self-sustaining.
