Govt revises vehicle import policy to increase mileage limit for new cars

Limit defining a "new vehicle" has been increased from the previous 500 kilometers to 2,000 kilometers

The government has announced a significant amendment to the Import Policy Order (IPO), 2022, raising the mileage limit for imported new cars. Previously capped at 500 kilometers, the threshold for what constitutes a “new vehicle” has now been extended to 2,000 kilometers.

This change aims to minimize the detention of imported vehicles by Customs at ports, according to sources from the Commerce Ministry.

The revision was prompted by concerns raised by vehicle importers who have repeatedly faced issues with the original 500-kilometer limit.

These constraints often led to the holding of vehicle consignments at ports for exceeding the stipulated mileage, affecting the import process.

Under the updated provisions of the IPO, a “new vehicle” is defined as one that is manufactured within the 12 months preceding its importation date, has not been registered, and has been driven no more than 2,000 kilometers before its import.

The decision to adjust the mileage criteria came after deliberations by the Cabinet Committee for Relaxation of Import/Export-related Prohibitions.

Recognizing the challenges importers encountered with vehicles accruing over 500 kilometers in transit from manufacturing sites or warehouses to ports, the Committee recommended the amendment for a one-time condonation of extra mileage.

The Economic Coordination Committee (ECC) of the Cabinet, upon reviewing the Ministry of Commerce’s proposal on February 14, 2024, approved the amendment.

The Federal Cabinet subsequently endorsed this decision, signaling a shift in policy designed to streamline the importation process for new vehicles and alleviate the procedural bottlenecks at customs.

 

11 COMMENTS

  1. This new limit of 2000 km for import of new Cars will open doors for the import of STOLEN cars from other countries of the world. THIS NEGATIVE repercussion of the new policy has been totally ignored. Please revise the issue in the light of this observation before it is late. In past also, there had been an issue of a stolen car in some country that was found registered in Pakistan.

  2. each policy must be debated in the NA before implementation. vested interests result in formulating harmful policies. All aspects good and bad, must be discussed in NA before finalizing a policy.

  3. This policy was encouraged by the brand new vehicle importers to curb the used vehicle importers. If a used vehicle which is less in milage than 2000 kms will be concidered as new vehicle and duty structure will change from used vehicle to new vehicle. This was the basic agenda intiated by new vehicle importers such as MG HYUNDAI and other new vehicles importer.

  4. Very good decision. The local new vehicles are very costly and local manufacturers are looting Pakistani people and earning huge profits. This decision will bring down prices of locally manufactured vehicles besides good news for low income people.

  5. Salam to all..!
    A brother is that stolen cars will come to Pakistan and there will be the issues. But 1 fact was missing… The country from which car is stolen should change the export criteria and there will be a online clearance, so after export there will be no issue because vehicle has clearance certificates.

  6. Dear Pakistan Today and Concerns

    Please raise the issue to make policy for EV as this is the time to start encourage Electric Vehicles, As
    Gulf & Pacific countries even India has successfully started EV manufacturing and assembling and also obliging with subsidies to purchase EV instead of conventional Vehicles,

    Please raise this matter with Government Authorities to announce some friendly EV policy in the favor of country and nation.
    BYD
    NETA
    MG
    and many other brands have started to sell and produce in the above countries due to their friendly Government policies.

    Thank You

  7. local Industry must be keep in mind to create more Jobs and policies must be made to Export Vehicals… to get much needed Foreign Exchange.

  8. The fact is that our nation have become thief, taking corrupt and selfish thoughts of our govt and civil leadership. Now taking example from leaders/policy makers, every one keep devising loopholes in the sys to make money and achieve the target.

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