As per to SRO 1067(1)/2017 the import of used car would turn out to be hard; likewise, with the issuance of SRO 1035(1)/2017 government imposed duties on 356 items, underneath which the duty of new imported car comprising of an engine capacity beyond 1800cc was also revised. And now in a new development according to a local media outlet, ET, importers in a bid to pressurize the government have determined not to pick their cars from the port until government pull out its policies, which it introduced in October last year. These actions by importers have shaped gridlock at the port.

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Approximately 7,000 imported used cars are coming up to be cleared at the port of Karachi whereas the same number of vehicles to reach the port in coming days. This huge bulk of cars are creating troubles for the port authorities. Furthermore, importers are also asserting that Customs officials have not finalized the payment mechanism via which their cargo will be cleared—an explanation presented by the importers for not picking up their cargo from Karachi port.

Despite the fact that talking to media, Chairman All Pakistan Dealer Association, H.M. Shahzad uttered that government should have planned a new mechanism prior to implementing new rules and policies. Now car importers have to pay demurrage as clearing their cars from the port, he added.

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Car importers sought after the government to give them sufficient time prior to implementing the new policy; nevertheless, the Ministry of Commerce at that time didn’t give any relief to the importers.

Authorities are asserting that too many imported cars are coming in the country and if in some way they reduce the import of cars for few months, it will trim down the trade deficit of the country in the ongoing FY ending in June.

Finally, local automotive analysts have said that on an annual basis Pakistan is spending approximately $750 million on used cars, which is unquestionably a huge sum.

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