Ban Imported Vehicles
Automotive News

The Government is Imposing a Six-Month Ban on Imported Vehicles.

The Government is Imposing a Six-Month Ban on Imported Vehicles.

December 2, 2021 / By Zunair Tahir / News Pakistan

The government has decided in principle to impose a temporary ban on the import of completely built unit (CBU) vehicles (imported cars) for the next six months (Jan-June 2022), as well as raise regulatory duties (RDs) and additional customs duties (ACD) on 10 to 12 other luxury items, in order to reduce the yawning current account deficit.

The government thought that by imposing a temporary ban on CBU imports, it would be able to cut its annual import bill by more than $3 billion.

The current account deficit (CAD) hit $5.1 billion in the first four months of the current fiscal year (FY2021-22), up from $2.3 billion in the previous budget (2021–22), which was authorized by parliament and the National Economic Council (NEC) for the full fiscal year.


GOVT Refuses to Allow Vintage Car Import

The administration now fears that the CAD will reach $15 billion in the current fiscal year if present trends continue.

The economic managers met with key stakeholders, including ministries and divisions, to figure out ways to lower the CAD.


Due to high demand for new autos, Pakistan recorded record foreign exchange spending. In Pakistan 2020-21, the country had the highest-ever arrival of new imported cars, followed by the restart of used vehicle imports.

Imports of new automobiles, vans, jeeps, pickup trucks, buses, and two-wheelers totaled 10,513 units in 2021, compared to 1,680, 3,716, and 7,424 units in 2020, 2019 and 2018.

In 2021, 390 new electric cars (EVs) and 19 old EVs will be imported for the first time.

Hope for the Future and lets see what this ban effect auto sector

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Automotive News

GOVT Refuses to Allow Vintage Car Import

GOVT Refuses to Allow Vintage Car Import

November 11, 2021 / By Zunair Tahir / News Pakistan

The government has declined to offer a one-time exception for antique automobile imports. The trade ministry had presented a case to the cabinet in this respect at a meeting held last week.

The participants were notified by the Commerce Division that the Import Policy Order (IPO) 2020, Appendix-C, Clause 10 indicated that the import of second hand/used automobiles was prohibited, save for those explicitly exempted under Chapter 87.
Pakistanis are prohibited from importing secondhand automobiles, even vintage vehicles.

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The Federal Board of Revenue (Revenue Division) issued SRO 833(I)/2018 on July 3, 2018, imposing a $5,000 per unit cumulative levy on the importation of antique cars/jeeps (PCT 8703) over 50 years old.

The SRO, however, could not be implemented due to the Import Policy Order’s prohibition on the import of historic automobiles.

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