The Pakistani government is preparing a major overhaul of the used car import system, aiming to bring transparency, curb corruption, and support genuine overseas Pakistanis.
According to officials, new reforms are being drafted to restructure the import schemes that allow thousands of used cars to enter Pakistan each year. The move seeks to end long-standing misuse of the current system by commercial importers and ensure that only legitimate buyers benefit.
A high-level meeting at the Ministry of Commerce, chaired by Federal Minister Jam Kamal and Special Assistant on Industries Haroon Akhtar Khan, brought together key stakeholders, including representatives from PAAPAM and PAMA, to discuss the proposed reforms.
The government is considering merging the baggage, gift, and transfer of residence schemes, which have often been exploited for under-invoicing and illegal imports. A formal summary containing the proposals will soon be presented to the Economic Coordination Committee (ECC) for approval.
Minister Jam Kamal said the reforms will ensure transparency through pre-shipment and post-shipment inspections. “We are determined to eliminate corruption from the used car import system,” he stated, emphasizing the need for clear rules and stronger quality control measures.
Currently, commercial imports of used cars carry a 40% regulatory duty, but reports suggest that the government may gradually reduce these duties to encourage fair competition. This potential reduction could reshape the local auto industry and impact car prices across the country.
Haroon Akhtar Khan highlighted that closer coordination between the commerce and industries ministries is crucial for a sustainable, corruption-free auto sector. Industry associations have also proposed measures to promote localization, vendor development, and research and innovation to make Pakistan’s automotive industry more competitive.
If approved, the overhaul of the used car import system could revolutionize Pakistan’s auto market, empower overseas Pakistanis, and improve transparency — while challenging the dominance of powerful car import lobbies.
In other news red more about: Pakistan Approves Commercial Import of Used Vehicles With New Regulations
