In an effort to loosen the restrictions placed on the import of old, unregistered automobiles, the Ministry of Commerce revised Import Policy 2022 on Thursday.
According to the specifics, the government has permitted the entry of used automobiles with 2,000 kilometers on them, as compared to the former policy that permitted the import of cars with a maximum mileage of 500 kilometers.
Cars with up to 2,000 kilometers on them would be deemed “new” under the revised import regulation, according to the ministry’s announcement.
It is important to understand that imports have a big effect on the economy of the nation since most payments are made in dollars, which has an effect on the nation’s foreign exchange reserves.
In an effort to protect the diminishing foreign exchange reserves, previous administrations—including the caretaker government and the coalition led by the Pakistan Democratic Movement (PDM) and the Pakistan Muslim League-Nawaz (PML-N)—in fact implemented strict restrictions on auto imports.
The State Bank of Pakistan (SBP) relaxed the rules governing import advance payments in February of this year, enabling authorized traders to make full advance payments without first obtaining permission.
Previously, The News reported a 30% rise in automobile sales for the month of January compared to the same time in 2023, citing figures from the Pakistan Automotive Manufacturers Association (PAMA).
According to the PAMA, sales of passenger automobiles increased to 7,802 in January of this year from 6,021 units in the same month previous year.
Nevertheless, with 38,464 cars sold in the first seven months of the fiscal year as opposed to 74,933 in the same period of FY23, auto sales were still down 49%.
PAMA spokesperson Abdul Waheed Khan told that the move is merely intended to accommodate brand-new cars that, for logistical and transportation reasons, previously did not fall within the permissible import bracket because they exceeded the mileage limit despite only having a few kilometers on them.
It seems improbable that the government’s modification of the import policy would cause a significant change in the regional car sector.
I am a dedicated student currently in my seventh semester, pursuing a degree in International Relations. Alongside my academic pursuits, I am actively engaged in the professional field as a content writer at the Rangeinn website.