Pakistan’s federal government revised the Import Policy 2022, liberalizing restrictions on imported used cars.
The Ministry of Commerce, through a recent notification, has expanded the permissible mileage for imported used cars from the previously allowed 500 kilometres to now up to 2,000 kilometres.
This adjustment signifies that cars with up to 2,000 kilometres on their odometers will be classified as new under the modified import guidelines.
Historically, previous administrations, including PTI and PDM, enacted strict limitations on car imports to conserve dwindling foreign exchange reserves.
To ease these constraints, the State Bank of Pakistan (SBP) last month facilitated the procedure for making advance payments for imports. Authorized dealers are now permitted to execute full advance payments without prior approval.
However, reports indicate a significant decline in car sales across Pakistan, with a nearly 50% drop observed in the first seven months of the current fiscal year, attributed to various factors such as rising prices, the dominance of automobile manufacturers, and stringent import restrictions.
