Govt sets to introduce key reforms to curb misuse in used-car import schemes

The federal government has drafted significant amendments to used-car import schemes, with the Commerce Ministry set to present a detailed summary for approval in the Economic Coordination Committee (ECC) meeting scheduled for tomorrow (Tuesday), 24NewsHD TV reported on Monday.

According to official sources, the proposed changes aimed to ensure genuine overseas Pakistanis receive facilitation while curbing the widespread misuse of existing schemes.

The reforms focus on introducing uniformity to the baggage, gift, and transfer of residence schemes that are currently used for importing used vehicles.

Officials noted that the amendments are especially targeted at reducing corruption risks associated with commercial used-car imports.

These risks will be mitigated through stricter processes, including pre-shipment and post-shipment inspections, which are expected to enhance transparency and compliance.

The new framework will introduce stronger quality controls and clear import regulations, which authorities believe will promote transparency, support the growth of the auto industry, and prevent exploitation of import channels.

The sources emphasised that the central objective is to eliminate misuse of import schemes while simultaneously encouraging local manufacturing and enhancing global competitiveness.

Additional recommendations have been made regarding vendor development, tariff restructuring, and research and development to strengthen the domestic auto sector.

At present, commercial import of used vehicles carries a 40% regulatory duty, officials said.

Under the proposed reforms, this duty will be gradually reduced every year to encourage a more transparent and sustainable import environment.