There has been quite a lot of turmoil in local used car market in view of the fact that the government issued SRO 1067(1)2017. Under the new SRO, the authorities have tried to grip on those who were exploitation used car import schemes, Baggage, Gift and Transfer of Residence. The major idea of this SRO was to hold back the import of used car in Pakistan, which is one of the major causes the trade deficit of the country keeps on rising. We are making sense of the reported the SRO long time back; nevertheless, a rumor has started to spread on social sites stating that in 2018 the import of used cars will shut down completely, which is without a doubt wrong.
Younus Dagha ,the commerce secretary also said in November when taking to ET that government was not trying to end the import of used cars let alone trying to shut it down entirely. He said,
“We want to discourage unnecessary imports at this time to curtail the growing trade deficit.”
It is false idea that government is trying to stop the progress of car import, it only has made stronger rules so that only genuine overseas Pakistanis can fetch vehicles in the country as these schemes were initially developed to gratify the needs of Pakistanis living abroad.
As per the new rules, all vehicles in new/used condition to be imported either under personal baggage, gift or TR scheme, their duty, and taxes will be paid out of foreign exchange arranged by Pakistan nationals themselves or else the local recipient backed by bank encashment certificate presenting the conversion of foreign remittance to local currency.
Pakistanis imported about 56,000 cars in 2015-16 fiscal year and 65,000 in 2016-17, which led the government to impose strict import policy to reduce trade deficit in the current fiscal year which is ending on June 30, 2018.
Moreover, the commerce secretary as well said that one could see the change in used car imports starting next year. Analysts have emphasized that this new SRO has unquestionably hit used car market, it will not halt the import of cars, however under new SRO it will be hard to import cars in the country.
So the government in no way is planning to halt the import of cars from 2018, however it is preparing to restrict it to filter out country’s trade deficit.
