The import of used car falls in the month of February by 74 percent and this is a big loss for Pakistan’s import industry. The import of used cars decreases because of the new SRO 52 (1). Terms and conditions to the import of used car are very strict by this law that’s why many of the traders don’t have the mood to import car under these restrictions.
According to the statement of Pakistan Bureau of Statistics (PBS), the trend to import cars in Pakistan has dropped. In the last month January 2019 the import of cars in Pakistan around $37 million, it has decreased by $9.5 million and it’s mean 74 percent import decrease in the month on month period.
In the new policy, users pay their duty in foreign exchange. Under the new SRO 52 (1) the duties of all new and used imported cars are falling under the category of personal baggage or gift scheme, payment only paid in foreign exchange and only two types of people paid the payment, Pakistani nationals, and local recipients. All the duties and taxes will pay from the account of the Pakistani national who is sending the vehicle to Pakistan and it is strictly by the SRO and one other person can pay the payment who is the close family member of the trader. This order came from the government and government takes this step to stop the misuse of import because traders misuse the import policy and this is directly affected by foreign exchange reserves.
This new policy has directly affected the import of cars and the chairman of All Pakistan Motor Dealers Association, H.M Shehzad said that because of this new policy the suppliers from Japan have suspended their shipment to Pakistan only those vehicles landed on the port that is contracted under the old law. He also said that because of this strict policy the import of used car in Pakistan will fall down badly and government will bear the loss of taxes and duties against the vehicle import and this is also a big loss for the revenue of government.
