ISLAMABAD – Pakistani government is gearing up for massive overhaul of the used car import system, a move that could transform auto market and tighten the noose on corruption.
Major changes are being drafted to restructure the import schemes under which thousands of used vehicles enter Pakistan every year. The aim is to facilitate genuine overseas Pakistanis while putting an end to rampant misuse by commercial importers.
A high-stakes meeting was held at the Ministry of Commerce, chaired by Federal Minister Jam Kamal and Special Assistant on Industries Haroon Akhtar Khan, where key industry stakeholders, including PAAPAM and PAMA, weighed in on the reforms.
Pakistani government is considering unifying the baggage, gift, and transfer of residence schemes, which for years have been exploited for under-invoicing and illegal imports. A summary containing these explosive proposals will soon land before the Economic Coordination Committee (ECC) for approval.
Minister Jam Kamal didn’t mince words, vowing to root out corruption in used car imports. “Pre-shipment and post-shipment inspections will ensure transparency,” he declared, adding that quality control and clear import rules will be strictly enforced.
Currently, commercial imports of used cars face a 40% regulatory duty, but insiders reveal the government plans to gradually slash these duties, a move that could shake up local automakers and redefine competition in the market.
Haroon Akhtar Khan stressed that coordination between the commerce and industries ministries is vital to build a sustainable, corruption-free auto sector.
Meanwhile, industry groups have jumped in with their own ideas, pushing for localization, vendor development, and stronger R&D to make Pakistan’s auto industry globally competitive.
If approved, these changes could revolutionize how used cars enter Pakistan, boost transparency, and empower overseas Pakistanis, but they might also rattle the powerful car import lobbies that have long dominated the business.
