ISLAMABAD: The Ministry of Industries and Production has rejected the proposal for allowing import of used/old cars on commercial basis.
The ministry had given this suggestion to the Commerce Division and Federal Board of Revenue (FBR) which are formulating import and re-export of used vehicle policy 2019-29.
In this regard, a meeting was held at Engineering Development Board (EDB) early this month with the used car dealers to analyse the proposal wherein it was unanimously observed that the dealers were interested in commercial import of used/old cars.
The EDB had opined that proposed plan would negatively affect existing assemblers, new entrants and auto parts makers.
The Auto Development Policy 2016-21 had attracted $1.3 billion investment from foreign investors who are at various stages of setting up their projects.
Of them, 15 investors had been granted green field status and two closed down units were revived under brown field category. Few new entrants had also planned to export vehicles. Besides, the existing assemblers are enhancing their capacities.
The ministry said allowing commercial imports for domestic market would be against the spirit of Auto Policy 2016-21.
As the budget 2019-20 is around the corner, the used car dealers lobby has become active to get some relaxation in the rules and regulations for import.
