In a move aimed at boosting market options, Pakistan’s Tariff Policy Board (TPB) has approved the import of commercial used cars up to five years old, subject to a 40% additional duty. The decision, led by Commerce Minister Jam Kamal Khan, has drawn sharp criticism from the local auto industry, which fears adverse effects on domestic manufacturing and potential regulatory challenges.
**Key Details of the Approval**
The TPB’s decision permits the import of used vehicles under PCT Code 8703, specifically for commercial use. These imports will incur a 40% additional regulatory duty. The proposal will now be forwarded to the Economic Coordination Committee (ECC) for final approval. Until June 30, 2026, only vehicles manufactured within the last five years will be eligible for import. After this date, the age restriction will be lifted. All imported vehicles must meet environmental and safety standards enforced by the Ministry of Industries and Production.
**Industry Concerns**
Local automakers have strongly opposed the move, citing risks to domestic production and employment. Industry representatives also raised concerns about the potential for money laundering and terror financing, noting that the used car trade is already monitored by the Financial Action Task Force (FATF). They argue that the policy overlooks international best practices and could weaken Pakistan’s auto manufacturing base.
**What’s Next?**
If the ECC approves the proposal, commercial importers will gain access to a previously restricted market. However, local manufacturers may face heightened competition amid existing challenges like declining sales and rising costs. The decision highlights the government’s effort to balance consumer demand with industrial sustainability.
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### **Frequently Asked Questions (FAQs)**
**1. What is the new policy for used car imports?**
The government has approved the import of used commercial vehicles up to five years old, with a 40% additional duty.
**2. Are there any restrictions on the imported vehicles?**
Yes, until June 2026, only vehicles less than five years old can be imported. They must also meet environmental and safety standards.
**3. Why is the auto industry unhappy with this decision?**
The industry believes it will harm local manufacturing, lead to job losses, and attract regulatory scrutiny from bodies like FATF.
**4. What happens next?**
The proposal will be reviewed by the Economic Coordination Committee (ECC) for final approval.
**5. How will this benefit consumers?**
Consumers may have access to more affordable vehicle options, though the long-term impact on the auto industry remains a concern.
