The Pakistani government has imposed an additional 40 percent regulatory duty on the commercial import of used cars and is introducing stringent inspection systems to curb the misuse of import schemes and protect the domestic automotive industry, officials announced Thursday.
The measures were discussed in a high-level meeting at the Ministry of Commerce, co-chaired by Federal Minister for Commerce Jam Kamal Khan and Special Assistant to the Prime Minister on Industries Haroon Akhtar Khan, with industry stakeholders, according to a report on Thursday.
Federal Minister Jam Kamal Khan stated that the introduction of pre-shipment and post-shipment inspection systems by the Engineering Development Board (EDB), along with strict quality control measures, would effectively discourage the misuse of commercial used car imports.
‘By enforcing quality inspections and defining clear import rules, we aim to promote compliance and transparency while supporting Pakistan’s industrial growth,’ he said, reaffirming that the ministry’s priority is to assist local industry in becoming more competitive and self-sustaining.
The minister shared that the new 40 percent regulatory duty will be gradually reduced each year, providing a balanced incentive structure for the local automotive industry while ensuring fair market dynamics.
Officials are also formulating proposals to amend the various schemes for importing used vehicles by overseas Pakistanis to minimize the potential for commercial exploitation. The proposed steps aim to enhance authenticity and curb the unauthorized use of baggage, gift, and transfer of residence import schemes.
A proposal was also reviewed to harmonize the eligibility period across all three schemes. Industry representatives suggested standardizing the required duration of stay abroad, which is currently six months for the baggage scheme, to simplify the regulatory process.
SAPM Haroon Akhtar Khan highlighted the need for closer coordination between the commerce and industries divisions and urged the Pakistan Automotive Manufacturers Association (PAMA) and the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) to urgently submit their proposals for the upcoming Automobile Policy, which is being finalized for November.
During the discussions, representatives from both trade bodies presented detailed suggestions on localization, vendor development, tariff rationalization, and research and development incentives.
The Federal Minister directed the industry to submit comprehensive proposals for a long-term automotive policy that aligns with national industrial objectives.
Concluding the session, Jam Kamal Khan reaffirmed the government’s commitment to partnership with the industry. ‘Our goal is not only to control misuse in imports but also to strengthen local manufacturing and build Pakistan’s capacity for global competitiveness,’ he added.