Govt eases import restrictions on used cars

WEB DESK: The Ministry of Commerce announced amendments to the Import Policy 2022 on Thursday, aiming to relax restrictions on the importation of both used and unregistered vehicles.

Under the revised policy, the government has revised the mileage threshold for imported used cars. Previously, only vehicles with up to 500 kilometres were permitted for import.

Now, cars with a mileage of 2,000 kilometres are eligible for importation, effectively expanding the range of vehicles that can be brought into the country.

According to the ministry’s notification, cars with a mileage of up to 2,000 kilometres will now be classified as “new” under the updated import policy.

This adjustment holds significance in the context of the national economy, given that imports heavily influence the country’s economic landscape, particularly due to payments being predominantly made in foreign currency, chiefly dollars.

Consequently, these import policies have a direct impact on the nation’s foreign exchange reserves.

Earlier this year, in February, the State Bank of Pakistan (SBP) relaxed regulations pertaining to advance payments for imports.

This adjustment permitted authorised dealers to execute full advance payments without the need for prior approval, streamlining the import process.

It’s noteworthy that previous administrations, including interim governments and the coalition government had enforced stringent measures to curb car imports, aiming to safeguard the dwindling foreign exchange reserves.

Read next: PSX surges to record high