Used Car Imports Beginning to Rise Again

The import of used cars is beginning to rise again as importers have found new ways to tackle the stringent import policy which was enforced earlier this year. According to Express Tribune, used cars are now being imported on the passports of Pakistanis residing in Dubai under the gift scheme but vehicles directly reach Pakistan. Furthermore government authorities have so far failed to notice this exploitation of the policy.

Related: Government Rejects Commercial Import of Used Cars

After the issuance of SRO 52, the misuse of used car import schemes had been successfully tackled. It not only stopped the exploitation of the schemes but also halted payments through the illegal Hawala and Hundi systems, which were utilized for sending money for illegal imports.

However the number of imported used cars has so far increased to 1,096 in the current financial year, of which more than 560 units came in September. According to details, a total of 467 passenger cars have been imported so far during the current fiscal year, including more than 250 units in September alone. Imports of SUVs have also increased as 276 units were imported in this fiscal year so far, of which 130 were imported in September.

Related: PAAPAM Opposes Proposal for Used Car Import

According to an official, this may also impact efforts made by Pakistan to come out of the Financial Action Task Force (FATF) grey list as used car imports were one of the biggest contributors to the undocumented and illegal transactions. He stressed that the government should immediately look into the issue and must stop the practice in time before it gets late.

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