EDB Opposes Any Leniency on Used Car Import Restrictions
The federal government was thinking of taking back the rigid conditions on importing used cars but the Engineering Development Board (EDB) is against as it will undercut the expected investment plan in the auto industry worth $3.2 billion.
The government has been mulling over the idea of taking back the restriction in a bid to reach the revenue generation target of over PKR 5000 billion for the coming fiscal year. The local car lobby has also opposed the idea as they say relaxing the restriction on imports of used cars will harm the local industry and their sales. To this effect, they have launched a media campaign to change the government’s mind in this regard.
In the case of the car importers, they have seen the import of used cars slow down ever since the policy submitted by the ministries of commerce and industry was approved by the government. While the decision was welcomed by the local car lobby, it faced opposition by the Federal Board of Revenue (FBR), which was looking at a revenue shortage of PKR 100 billion from imports.
It is worth pointing out that earlier this month, a meeting took place between EDB officials and the members of the Car Dealer Federation to evaluate the impact of used car imports and it was agreed that the dealers were keen on the commercial import of used cars.
The EDB was of the opinion that the proposed policy would impact negatively on the existing original equipment manufacturers, newcomers and auto parts manufacturers.
The Auto Development Policy (ADP) 2016-21 has seen foreign investors, invest more than $ 1.3 billion and are at various stages of establishing their projects, according to documents.
15 new investors have been given the Greenfield Staus while two closed down units under the Brownfield category have been revived. The existing OEMs are increasing their capacities; three entrants have started manufacturing while the remaining ones are expected to finish their manufacturing facilities soon.
Source: Pro Pakistani