Pakistan’s used car dealers are lobbying the government for changes to import regulations. They believe these changes would benefit both consumers and the government.
The All Pakistan Car Dealers and Importers Association (APCDIA) proposes two main options:
This would permit the legal import of used cars up to 10 years old and SUVs up to 20 years old. APCDIA argues this would generate significant revenue for the government and offer consumers more affordable car options. This approach suggests a yearly quota of $800 million for used car imports through official banking channels. APCDIA believes this would:
Reduce illegal currency exchange through unofficial channels. Increase transparency by routing all transactions through banks. Boost tax collection as importers would be required to pay import and sales taxes.
The association also criticizes the current level of protection given to domestic car assemblers. They argue that: Heavy government subsidies haven’t resulted in lower car prices for consumers. Limited competition discourages innovation and localization of parts production.
APCDIA proposes reducing protection for assemblers to: Encourage them to develop new technologies and car models. Motivate them to localize parts production, reducing costs and improving fuel efficiency.
They claim that despite receiving significant benefits to set up operations, domestic assemblers: Still import most expensive car parts. Haven’t achieved true “manufacturer” status due to limited local production and lack of technology transfer.
APCDIA concludes by urging the government to adopt policies that promote a competitive auto market, offering consumers more affordable and fuel-efficient car choices.
