When SRO 1067(1)/2017 was issued last year, the automobile industry of Pakistan went into a frantic state. Local importers of Pakistan are critical towards the government and want it to take back the policy. The point made by government is that to decrease trade deficit in the country they have changed the car import policy. Furthermore, this policy was introduced to bring ease in lives of Pakistanis residing abroad.
Both the government and local importers have their valid points and objections. Chairman of APDMA HM Shahzad said that the amendment in car import policy will limit the import of used and new cars in Pakistan and it will cost almost 0.7mn locals their jobs.
Furthermore, he said that they are thankful that the government allowed them to clear their vehicles from Karachi port but this is not a permanent solution. The government must take firm stand to resolve the issue. He said that along with people losing their jobs, Pakistan national treasury will face a loss of almost PKR 80 billion which it gains via duties and taxes.
He was clear that the steps taken by the government are not beneficial for the consumer. Also when the government introduced SRO 1067(1)/2017, as a reaction the local automakers have increased their vehicle prices.
The truth is that people are suffering ultimately, so it is important for the government to negotiate and come to some middle ground with the local importers.
What is SRO 1067(1)/2017?
The known fact is that Pakistan’s exports are much less compared to the imports. In order to solve issues like the export deficit, devaluation of rupee and to encourage and help car import schemes the Government of Pakistan issued SRO1067 (I)/2017 by changing IPO-2016.
As per the amendment, any vehicle that is imported its duty and taxes must be paid from the foreign exchange that will be arranged by the Pakistan nationals themselves. Also, it can be done by a local recipient along with a bank encashment certificate that clearly shows the exchange of foreign currency to local currency.