PAMA alarmed over resurging used car imports

KARACHI: Pakistan Automotive Manufacturers Association (PAMA) on Monday raised alarm over the illegal import of used cars, fearing, the practice, which undermines local industry, might see a jump, if left unchecked by the concerned authorities.

The number of imported used cars in September 2019 stood at 565 units whereas the combined figures of July and August were just 531 units, the association said in a statement.

A PAMA spokesperson said, “In October 2019 alone, such imports jumped to 709 units, clearly showing the influx of used cars into the country is on the rise again”.

The official said the current government’s strict policies had been able to control illegal import of used cars as it reduced in FY19, which was quite a success on the part of the government.

“But it seems that the importers’ have once again found a way to continue with their nefarious plans of denting the local auto industry,” he said, adding that the situation was alarming and the numbers of imported vehicles had increased substantially in recent months.

“There are some media reports that importers are using the passports of Pakistanis residing in Dubai and dumping used cars into the country.”

He urged the government to immediately look into this issue and stop this practice in order to help the local auto industry as the import of used cars was damaging to the environment, the local auto sector, and the national economy.

He highlighted that auto industry was termed as Mother of All Industries and was home to 3 million direct and indirect jobs.

“We are already bearing the brunt of rupee devaluation, additional duties and an increase in interest rates and now the misuse of imported used cars schemes will be very detrimental for industry,” the spokesperson said.

He added that now the government had to decide between trade and industrialisation and it was the latter which would ultimately lead to employment opportunities, transfer of technology and open doors to export.