Dodging the car policy, importers are importing used cars on passports of Pakistanis residing in Dubai

The importers, allegedly, are importing these cars under a 'gift scheme', but the vehicles directly reach Pakistan. 

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Imports of the used car have sky-rocketed once again as the importers have found out a new strategy to dodge the stringent policy. As media sources report, it has been found that the importers are now using passports of Pakistanis currently residing in Dubai, and the authorities have failed to put their finger on this loophole.

The importers, allegedly, are importing these cars under a ‘gift scheme’, but the vehicles directly reach Pakistan.

“The number of imported used cars has increased in the current financial year as so far 1,096 cars have been imported, of which more than 560 units came in September,” said an official, as reported by a media outlet. 

After the issuance of SRO 52, the issue of used car import has been effectively tackled. Not only the exploitation of such schemes, but it has also halted payments through illegal Hawala and Hundi systems, that were previously utilized for transactions through illegal means.

“It is alarming that the importers have once again found a way to continue with their plans, which are denting the domestic auto industry, as the number of imported vehicles has increased in recent months,” the official added.

The government must take effective measures:

The official said that this will also contribute to Pakistan stepping out of Financial Action Task Force (FATF) grey list, as used car imports is a sector that contributes most significantly to illegal and undocumented transactions.

Hence, to maintain the progress made on FATF’s front, the government must immediately spring into action and provide an effective strategy to address the issue.

As per the available details, a total of 467 passenger cars have been imported so far during the ongoing fiscal year. Out of this, 250 units were imported in the month of September alone. Pakistan’s auto sector is currently dipping into decline, as experts term the current period as an ‘all-time low for the industry’.

What are your views on this? Share with us in the comments bar below.

  • Hi,
    You have not provided the details how they are doing it and how can they get away under this policy despite strict import policy. The only data you have is the numbers of car which does not prove anything. Could you please shed some more light on it. Thank you

  • Govt.should curb the illegal actions of whoever’s is involved.
    On the flip side, Govt.should provide a facility for overseas Pakistanis to export only one car under their personal name for personal use with least duty.

  • They are doing it good. If govt is determined to damage auto industry and consumers, dealers must find other ways to provide quality cars to consumers on reasonable prices.

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