EDB Opposes Any Leniency on Used Car Import Restrictions

The federal government was thinking of taking back the rigid conditions on importing used cars but the Engineering Development Board (EDB) is against as it will undercut the expected investment plan in the auto industry worth $3.2 billion.

The government has been mulling over the idea of taking back the restriction in a bid to reach the revenue generation target of over PKR 5000 billion for the coming fiscal year. The local car lobby has also opposed the idea as they say relaxing the restriction on imports of used cars will harm the local industry and their sales. To this effect, they have launched a media campaign to change the government’s mind in this regard.

In the case of the car importers, they have seen the import of used cars slow down ever since the policy submitted by the ministries of commerce and industry was approved by the government. While the decision was welcomed by the local car lobby, it faced opposition by the Federal Board of Revenue (FBR), which was looking at a revenue shortage of PKR 100 billion from imports.

It is worth pointing out that earlier this month, a meeting took place between EDB officials and the members of the Car Dealer Federation to evaluate the impact of used car imports and it was agreed that the dealers were keen on the commercial import of used cars.

The EDB was of the opinion that the proposed policy would impact negatively on the existing original equipment manufacturers, newcomers and auto parts manufacturers.

The Auto Development Policy (ADP) 2016-21 has seen foreign investors, invest more than $ 1.3 billion and are at various stages of establishing their projects, according to documents.

15 new investors have been given the Greenfield Staus while two closed down units under the Brownfield category have been revived. The existing OEMs are increasing their capacities; three entrants have started manufacturing while the remaining ones are expected to finish their manufacturing facilities soon.


    • Oh actually this was the decision taken by your head patwari before leaving the government. Do some research, visit a patwar khana

      • True, Greenfield policy was introduced by Nawaz and it was good decision. And now decision to ban import of cars is good for the country as we need to reduce import bill and strengthen local industry. But patwari nahi samjhay ga sala.

    • Hum aik bohot ghareeb mulk hain, aur hamein chahiye apni imports ko minimum karen. No need for imported used or new cars. Auto companies ko force karna chahiye k woh gariyan na sirf Pakistan mein banaen Balkay yaha say export bhi karen.

  • So we continue to get over priced and feature less cars just to accommodate the car manufacturers who have been looting us for decades. This also gives the new entrants the opportunity to loot us the exact same way. They will offer the cars which will be over priced and hardly any features which they offer in international market.

    What a stupid decision.

    • Feature less car ka solution hai k govt standards increase karay. Ye local govt problem hai jisnay standards bohot low rakhay hain. Import karna munasib nahi hai kyun k mulk chalanay k pesa nahi hai, aur gariyan aur dusray import IMF say karz le kar import karen kya? Pakistan exports are only 20 Billion and Imports are almost 50 Billion, on top of that loan repayments.

  • Shahid Mayo, this is probably the best decision government would ever make. Because local manufacturers give us crap in the price of high end vehicles.
    Their monoply must end.

  • I endorse govt decision. In this way govt will collect more revenue & peoples will have quality automobiles as per their requirement & budget. Its peoples old demand. At other hand local car manufecturing companies charge double price of tge vehicle & made low quality sub standard automobiles with out any compulsarry feature such as most important ABS Brakes, Air bags, traction control. It ll definately close corruption door. Car companies dafenitely paying cash for many reasons such as high cost as per substandard car, no feature & low quality.
    I read comments they look like mentioned by car co staff.


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