In a recent development, the federal government has made revisions to the Import Policy 2022, bringing about some relaxation in the rules regarding the importation of used cars.
The Ministry of Commerce has issued a notification stating that it will now permit the import of used cars with a mileage of up to 2,000 kilometres. This marks a significant shift from the previous restriction, which only allowed cars with a maximum mileage of 500 kilometres to be imported.
Essentially, under this amended import policy, vehicles with a mileage of up to 2,000 kilometres will be categorized as new, as stated in the ministry’s notification.
This move comes after previous governments, including the PTI and PDM, had imposed stringent limitations on car imports in an effort to safeguard dwindling foreign exchange reserves.
Moreover, in a related development, the State Bank of Pakistan (SBP) recently announced a relaxation in regulations concerning advance payments for imports. Authorized dealers are now permitted to make full payments in advance without prior approval, which is expected to streamline import processes.
Reports indicate that car sales in Pakistan have seen a significant decline of around 50% in the first seven months of the fiscal year compared to the previous year. Several factors, including rising prices, the dominance of automobile companies, and import restrictions, have contributed to this downturn in the automotive market.
