Used Car Imports Lurched as Government Revives Restrictions

The ministry of Commerce has revived a condition for used cars importers that will oblige the importers to make the payments and duties to foreign exchange directly by remitting from abroad. The controversial condition was introduced in the previous government that failed soon after.

The revived condition intends to cease the misuse of baggage rules or gift scheme.

Under the new rules, the remittance of payments and duties must now have its origin from the accounts of Pakistani national sending the vehicle from abroad.

The FBR data shows that the imports of completely built used cars fell by 43% in the first half of the fiscal year 2019. It is a huge decline as the total imports were $156m versus $277m in the same period last fiscal year.