The Ministry of Commerce made significant revisions to the Import Policy 2022 on Thursday, with the aim of easing restrictions on the importation of both used and unregistered vehicles.
In a notable amendment, the government adjusted the mileage threshold for imported used cars. Previously, only vehicles with up to 500 kilometres were allowed for import.
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Under the updated policy, cars with a mileage of up to 2,000 kilometres are now eligible for importation, effectively broadening the scope of vehicles that can be brought into the country.
As per the ministry’s notification, cars with a mileage of up to 2,000 kilometres will now be categorized as “new” under the revised import policy.
This modification carries significance within the national economic landscape, as imports play a pivotal role in shaping the country’s economy, particularly considering that payments are predominantly made in foreign currency, primarily dollars. Consequently, these import policies directly impact the nation’s foreign exchange reserves.
In a related development earlier this year, in February, the State Bank of Pakistan (SBP) relaxed regulations regarding advance payments for imports. This adjustment empowered authorized dealers to execute full advance payments without prior approval, streamlining the import process.
It’s worth noting that previous administrations, including interim governments and coalition governments, had implemented stringent measures to curb car imports, aiming to safeguard the country’s declining foreign exchange reserves.