Pakistan allows import of used cars as auto manufacturers warn of ‘devastating’ impact
KARACHI: Pakistan’s top economic decision-making body on Wednesday approved the import of used cars, drawing sharp criticism from industry stakeholders, who warned the move would have a “devastating” effect on local manufacturing in the country.
The decision was taken after a meeting of the Economic Coordination Committee (ECC) which was chaired virtually by Finance Minister Muhammad Aurangzeb from New York. The ECC said initially only vehicles not older than five years will be allowed to be imported until Jun. 30, after which the age limit will be removed.
The decision comes on the eve of the IMF mission’s arrival in Pakistan for its second review of the country’s economy under a $7 billion loan program. The global lender, among various other stipulations, requires Islamabad to liberalize its trade and lift restrictions on the import of used cars.
“The ECC considered a summary regarding the commercial import of used vehicles and, after detailed discussion, accorded approval to the proposals,” the finance ministry’s statement said.
