Automobile corruption: Stop abusing import policies, says PAAPAM

Officials, traders using personal baggage schemes for commercial gains.

Our Correspondent July 24, 2014


The country’s automotive industry and manufacturers are suffering due to the aftershocks of inconsistent import policies, rampant import of used cars and frequent amnesty schemes of the past government, said the Pakistan Association of Automotive Parts and Accessories Manufacturers’ (PAAPAM) Chairman Usman Malik on Thursday.

“Used car importers, in connivance with the customs and FIA immigration officials, are misusing the personal baggage schemes, which are meant only to facilitate overseas Pakistanis for importing their own used vehicles into the country,” said Malik.

The chairman added that in order to control the menace, all overseas Pakistanis, who bring their personal vehicles to the country, should be required to register these imported cars under their own name in Pakistan; with the condition that they cannot sell or transfer it for a specified number of years.

As per current rules, overseas Pakistanis are required to stay abroad for at least two years and the vehicles, which they wish to import, must be in their possession during their stay abroad.

Besides, they have to produce foreign vehicle registration certificates along with their driving licence at the time of clearance.

However, this scheme is being misused, which is being patronised by a lobby of some customs and immigration officers.

The majority of vehicles being imported under this scheme are not owned by overseas Pakistanis but their passports are stamped wrongly by immigration officers and used for commercially importing used vehicles from Japan.

Published in The Express Tribune, July 25th, 2014.

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Abid Naqvi | 9 years ago | Reply

This is very biased reporting

The big 3 have connived with government to maintain a cartel that results in locally manufactured cars being made available at Rs. 5-10 lacs above international market rates. This means that Pakistani consumers pay Rs. 125-150 billion a year more for their automobiles than they should. Roughly equal to 1% of the GDP.

I really doubt this loss is off set by job creation, tax revenues or any other benefit. Realistically the loss to the economy is much greater if Keynesian multiplier effects are counted

ather | 9 years ago | Reply

That is absolutely correct.

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