Pakistan has eased requirements for commercial imports of used vehicles after the Engineering Development Board revised the rules in a notification dated September 30.
The changes remove a minimum-capital requirement that had applied to companies importing used cars. Tax-registered individuals and firms can now commercially import vehicles even if they are not registered with the Securities and Exchange Commission of Pakistan.
The revised framework also changes the inspection arrangement. Pre- and post-shipment inspections are to be handled through the Pakistan Standards and Quality Control Authority rather than the EDB. PSQCA has said inspections are carried out through inspection agencies registered with the authority.
The relaxation has been welcomed by used-car importers, while local vehicle assemblers have raised concerns about increasing competition from imported vehicles.
The change matters for buyers and the auto industry because it lowers an entry barrier for commercial used-car imports and could broaden participation in the import business.
Pakistan Report illustration.