Pakistan

Government allows imports of five-year-old vehicles

Cabinet meeting chaired by Prime Minister Gilani approves decision to allow import of 5-year-old cars.

Irfan Ghauri January 26, 2011

ISLAMABAD:

After a period of over four years, the government has once again allowed the import of five-year-old vehicles – a move that is likely to reduce the spiralling prices of automobiles in the domestic market.

The federal cabinet on Wednesday approved the summery thereby increasing the period from three years to five years for the import of used vehicles.

This would generate competition for the local automobile manufacturers who are believed to be resisting the move on grounds that it would hurt their businesses.

Last month, the government had issued a notification, allowing the import of up to five-year-old cars, but it was withdrawn after 20 days. Many believed that the move was meant to benefit some influential figures.

Experts believe the prices of new and second-hand vehicles will come down after Wednesday’s decision of the cabinet. Briefing the media on the meeting, Minister for Information Qamar Zaman Kaira said the cabinet also ratified the Optional Protocol to the Convention on the Rights of the Child; the Sale of Children, Child Prostitution and Child Pornography.

The protocol would enable the government to fulfill its national and international obligations regarding children’s rights. The United Nations and the Organisation of Islamic Conference (OIC) have been urging their member states to ratify the protocol. The cabinet also ratified the UN Convention on the Rights of Persons with Disabilities.

The cabinet took stock of the status of implementation of its decisions pertaining to the ministries of information technology, law, overseas Pakistanis and petroleum and narcotics control division.

The cabinet was informed that around 95 per cent of the decisions were implemented, while the pending ones are subject to further negotiations between the stakeholders.

Prime Minister Yousaf Raza Gilani has directed that a timeline be decided upon for the completion of consultation with the stakeholders, so that the decisions could be implemented at the earliest.

The cabinet constituted a new committee, to be headed by the minister for interior, on the pending item related to the ministry of overseas Pakistanis regarding the signing of a Memorandum of Understanding (MoU) with the UAE government.

Kaira said the cabinet approved in principle to start negotiations with the Korean government on a MoU on cooperation for environmental protection.

The minister told the media that the cabinet also approved the start of negotiations for an agreement on an extradition treaty with Ukraine. Pakistan’s ambassador in Kiev has said that a number of Pakistani human traffickers operating in Ukraine have looted thousands of their compatriots in connivance with local authorities.

The cabinet also approved the initiation of talks with the Republic of Senegal for an agreement on avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. This is aimed to facilitate international trade and investment by removing tax obstacles, Kaira said.

Published in The Express Tribune, January 27th, 2011.

COMMENTS (26)

Ghufran | 13 years ago | Reply This is a Wonderful decision. Alot of investment is encouraged. Specially the local market that i charging Black Money (ON) for every car which is taking money in advance n delaying deliveries is not ethical from any point,atleast importers are providing consuemrs with good cars way superior quality,durablilty, price for money and Japanese Manufactured Vehicles. The Difference between local and imported cars cannot be denied,and the amount of revence being proided by the importers is quiet sufficient. If any 1 is intrested in importing car Do let me know.

Azhar Kayani | 13 years ago | Reply Govt allows import of five year old vehicles is good step but , this is a not good way to help the pepole, because custom duty is very high,

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burhan zangi | 13 years ago | Reply i like very much this decision of government,but some backwards do not supports to this decision.they are car traders......... i abused him

ghufran | 13 years ago | Reply This will be taken back. Alot of preassure from the Local Manufactures or may be some other factor will eventually lead to the withdrawl of this SRO. This is what this country is all about the local manufacturers contiune to black market their cars as usual. Imported cars would have given them a tough time,with way much better cars and lot of varities. Well nothing can be done forcasted or predicted in Pakistan. They shall atleast increase the depreciation from 1 to 2 Percent or wave the rugulatory duty.

Ghulam Muhammad | 13 years ago | Reply Very good news,Govt should reduce the prices of used cars in the market also.

Aamir | 13 years ago | Reply what will be the custum of 5 year old used cars.????????????

Yasir Altaf | 13 years ago | Reply It is important that duties/taxes on will be exported cars be reduced as when imported cars will come on the roads of Pakistan, the price difference with the new car will be negligible. Why not implement Free Trade Agreement with China and get things free of customs duties and trade tariffs. There is lot of things in FTA with China that can really be useful.

Naveeed Iqbal | 13 years ago | Reply Dont be too happy, prices will not come down so much.

Jack Aarse | 13 years ago | Reply This means Trade deficit will further increase.....why cant the government put a tab on local manufacturers instead.......they are charging almost double the prices in comparison with India. Even if you take into consideration PPP

MUHAMMAD YOUNAS | 13 years ago | Reply It is in response to the decision taken by the cabnt,acording to the sources forded by the president to do so, it according to me is very composed decision taken to benefit those who could not afford to have car, so Salm to the president for it

Omer | 13 years ago | Reply Agree, poorly written :@

aamir | 13 years ago | Reply Its a great decision.....now the domestic car prices come down

Shahbaz Younis | 13 years ago | Reply Great decision, now I am optimistic to buy my own car at low price.

A Suhail | 13 years ago | Reply So why not just allow import of everything into Pakistan and shut down the local industry, who needs local industry, employment etc etc anyways. Instead of reducing the tax on kits which these car manufacturers import we are allowing car imports. No wonder no one wants to invest in Pakistan.

Jamal | 13 years ago | Reply Killing local investments, will cause unemployment.

FJ | 13 years ago | Reply Quite interesting to read: 2 different topics under 1 heading, maybe i am not able to understand or else.

rahim | 13 years ago | Reply my 12 year old nephew could have written a longer and more informative on the given topic, where do you people come from

rahim | 13 years ago | Reply for god sake learn to write a simple article about a simple topic

rahim | 13 years ago | Reply why is it that after the first 10 or so lines there is no mention of cars or the policies implications but other unrelated stuff!!!

Amadeus | 13 years ago | Reply Bring down the automobile oligopoly please.

Ahmed Ali Latif | 13 years ago | Reply I think that this decision should come as a relief for all people, maybe not so for car manufacturers. The current exuberant prices of local cars has not benefited any person who plans to buy a car. This decision will surely help cut the sale price of local manufactured cars and allow for cheap import of quality cars from abroad, thus giving the nationals a good value for the money they spend. A reasoning giving by a Toyota dealer to me on my query regarding the prices of Hilux (re-launched) was that that the new price of 3 year old such an truck is the amount Toyota is offering. Now, i would want to see the revision in such prices by local manufacturers. Hopefully, this decision will not be reverted back in a week!

Farid | 13 years ago | Reply I appreciate Govt.decision for allowing cars to be in access of common man ,will help a lot in solving problems faced by commuters.

muhammad asif | 13 years ago | Reply This is good decition, it will make possible domestic car prices in limit which is better for all pakistani citizens.now we can hope that govt will take many other decisions in the favour of citizens.like that. .

javed | 13 years ago | Reply great decision.... increase limit more... to 7 or 10 years if possible...

Salman Ahmad | 13 years ago | Reply That is a great development.

muhammad asif | 13 years ago | Reply This is good decition, it will make possible domestic car prices in limit which is better for all pakistani citizens.now we can hope that govt take many other decisions in the favour of citizens.like that.

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