The car industry appeals to the government on its used car policy

Pakistan’s auto industry is urgently calling on the government to review the current used car import policy, highlighting the significant economic losses and detrimental impact on local automakers. This allegation comes as used car imports have dramatically increased, causing significant financial burdens.

Dramatic increase in imports of used cars

The data shows an astonishing 641 percent increase in used car imports, with the number skyrocketing from 3,386 units last year to 25,000 units in the first eight months of the current fiscal year alone. This inflow resulted in over Rs. According to industry representatives, the losses for the local economy amount to PLN 50 billion.

Representatives of the local automotive industry in an interview with ProPakistani expressed concern that the government had not provided protection to domestic manufacturers. Despite significant foreign investment and the employment of over 5 million workers, the sector is struggling under the burden of current import policies. Discounts on import of used cars, initially intended for overseas Pakistanis, were manipulated through corrupt practices. Vehicles are often imported under the guise of personal use, but are instead sold for profit, harming local businesses.

Economic impact and job loss

The document describes how favorable tax and customs policies on the import of used cars paralyzed the local assembly industry. This led to reduced demand for domestically assembled cars, inefficient production facilities, job losses, and a general lack of incentive to improve the local industry. The prevalence of gray market transactions further exacerbates the problem, posing a significant risk to legal transactions and causing potential revenue losses.

Industry leaders are advocating for immediate regulatory changes to support local industry growth. They emphasize the need for mutually beneficial policies that support industrial development and job creation. Consistent and favorable policies are key to enabling the local automotive industry to grow and make a positive contribution to the economy.

Protecting local jobs and the economy

Automakers emphasize the importance of protecting millions of families from unemployment. Despite having 13 local manufacturers and assemblers, the sector is still struggling to meet the needs of the common man due to high taxes and duties. The used car import process often involves a limited number of people engaged in profitable but non-contributing activities, compared to the wider economic benefits provided by local manufacturers.

A call to action

The industry suggests that the government should discourage or regulate the import of used cars to ensure the sustainable development and growth of the local car industry. They argue that in this way the government can protect valuable economic assets and ensure the livelihoods of millions of workers dependent on the local manufacturing sector.

As the financial year progresses, the auto industry remains hopeful that the government will heed their call and implement policies that promote local industry growth, job creation and economic stability.

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