Govt. Requested to Commercialize Import of Used Vehicles

Used car importers have appealed to the government to commercialize the import of second-hand cars, which will benefit the importers, customers and the government as well.

The customers will benefit from a wide range of choice whereas the government will earn revenue in the form of duty.

Currently, used cars can only be imported under three schemes:

  1. Transfer of Residence (TR)
  2. Gift
  3. Baggage

The current baggage law states that if a person goes abroad and returns with a car, he/she is only allowed to return with one vehicle to Pakistan in one year.

A significant decline in the value of imported second-hand vehicles was noticed after the government introduced a new policy. According to the newly introduced policy, importer of the vehicle was held liable to pay the duty in dollars.

The value of imported second-hand vehicles during the current fiscal year stands at $156 million, which is 43.6% below than what it was during the same period of the previous fiscal year — $277 million.

Two years ago, importers had to pay 91 to 225 percent in duty, which has now increased further.

The All Pakistan Motor Dealers Association Chairman, HM Shahzad, claimed that nearly 80 to 90 percent of all imported second-hand vehicles had small engine capacities; from 660cc to 1000cc.

The duty of all three schemes is the same and it increases as the engine capacity of the vehicle increases.

Shahzad further claimed:

Majority of the used cars in Pakistan come from Japan and they offer better features than locally assembled ones.

While the problems remains, it is also worth mentioning that import of used cars has also been blamed for putting pressure on country’s meagre foreign exchange reserves.

The BMA Capital Analyst, Faiz Sultan added:

This (used car imports) is because it hurts the investment in the automobile sector. In this regard, the government has announced the recent policy to discourage import and encourage new players in the country. Without investment, jobs cannot be created which this country needs badly.


  • Why Govt, Request to User ?
    Why Not to Make a SRO / Policy that “Every Import of Used Vehicles” should be Commercialize Import of Used Vehicles before so and so dated otherwise vehicles takes into custody. that’s it.


  • >