By S.M. Inam
ISLAMABAD: The Ministry of Commerce has drafted a set of proposals aimed at reforming the import of used vehicles, seeking to strike a balance between facilitating legitimate overseas Pakistanis and curbing longstanding misuse of existing schemes, sources familiar with the matter said.
The proposals are expected to be presented for approval at the Economic Coordination Committee (ECC) meeting scheduled for tomorrow, marking a potential turning point for the country’s automotive trade regulations. Officials explained that the reforms are designed to harmonies the different frameworks under which used vehicles are imported, including baggage, gift, and transfer-of-residence schemes.
By creating a unified approach, the government hopes to reduce opportunities for corruption and prevent commercial imports from bypassing existing regulatory safeguards. Measures such as pre- and post-shipment inspections, stricter quality control, and clearly defined import regulations are being proposed to increase transparency and ensure that the benefits of the schemes reach their intended recipients.
The proposed amendments also include wider considerations for the domestic automotive industry, with initiatives aimed at vendor development, adjustments to tariff structures, and support for research and development. Analysts said these steps could help bolster local manufacturing and enhance Pakistan’s competitiveness in regional and global markets, while simultaneously discouraging misuse of imported vehicles for commercial purposes. Currently, a 40 percent regulatory duty is imposed on commercial imports of used vehicles, which the ministry plans to reduce gradually each year under the new framework. Sources indicated that, if approved, the reforms would provide a clearer, more efficient system for overseas Pakistanis wishing to bring vehicles into the country, while reinforcing safeguards to protect the domestic industry and prevent exploitation of government schemes
