The government of Pakistan has announced and permitted the overseas Pakistanis to import three-year-old cars in Pakistan. The scheme will benefit individuals who wish to import cars in Pakistan under personal baggage, gift or transfer of residence. According to the figures, 8000 cars have been released from the ports so far.
Car dealers in Pakistan and overseas Pakistani working abroad were demanding the shift in policy which restricted them to import used cars in Pakistan. The policy was imposed in October 2017 which overruled the previous procedures to import cars in Pakistan.
The car dealers and other Pakistani nationals complaint about the government policy that thousands of cars that were imported before January 9 were held at the ports due to unclear policy but now the Pakistan customs department would release those 8000 cars.
The new rules imposed restrictions on the importers that they will have to provide full details of the importer, foreign banks, money conversion details and some others in order to get the cars imported in Pakistan. The government started stopping the cars at the ports which didn’t provide all the required documentation to import.
After receiving a strong response by business and foreign resident’s community government discussed the matter with Federal Bureau of Revenue (FBR), Ministry of Finance and the Ministry of Commerce which resulted in previous rules being restored.
However, the figures are alarming for the government as well, before October, 76,635 vehicles were imported into the country. But Miftah Ismail, the PM advisor on Finance said, “The Economic Committee of Cabinet (ECC) has approved the previous rules which were applicable before October 2017 and now the imported used cars will be released like in the past.”
On October 6, 2017, the government had imposed new rules under which “all vehicles that are being imported in new or used condition would come under transfer of residence, gift scheme or personal baggage, the custom duties and taxes will be collected in foreign exchange paid by Pakistani nationals themselves, or a local recipient supported by bank enchasment certificate showing the conversion of foreign remittance to local currency.”
Now, the Ministry of Commerce and ECC ensures the policies that can benefit the foreign nationals, car dealer and traders would also be benefitted from the reverted policy on used imported cars in the country.