Imports of used vehicles: APDMA moves MoC for inclusion in final consultation process

ISLAMABAD: All Pakistan Motor Dealers Association (APDMA) has approached Commerce Ministry for its inclusion to policy making process on imports of used vehicles, urging the continuation of existing schemes for overseas Pakistanis.

In a letter to Commerce minister, APDMA raised serious concerns on the draft Motor Vehicle Development Act 2025 proposed by the Engineering Development Board (EDB) through the Ministry of industries.

“The proposed measures are not only against the interests of legitimate stakeholders, but will also directly harm Pakistani consumers and Overseas Pakistanis who are contributing billions of dollars to the national economy every year,” the Association said adding that the TR (Transfer of Residence)/ Gift /Baggage Schemes are a lifeline for Overseas Pakistanis.

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“Any attempt to disturb or abolish these schemes would be a denial of their rights and will cause immense financial damage to the country,” APDMA added.

The Association further emphasised that the EDB is purely a technical body with its mandate limited to localisation and engineering development issues. The regulation of commercial import policy must remain with the Ministry of Commerce.

Any intervention of the EDB in trading matters would clearly be beyond its lawful mandate.

“Local assemblers had undertaken, at the time of setting up their assembly facilities, that they would achieve 100 percent localisation and produce a fully locally manufactured car within ten years.

However, despite a lapse of 35 years, this commitment has not been fulfilled,” APDMA maintained.

Moreover, the EDB failed in its regulatory duty to enforce the “Deletion Programme,” which required assemblers to gradually replace imported parts with locally manufactured ones.

This negligence has resulted in continued supply of incomplete and over-priced vehicles to Pakistani consumers.

Consequently, low-priced and high-quality vehicles from Chinese manufacturers are now dominating the market, while local assemblers have failed to compete-only because they did not honour the undertakings and obligations.

“If genuine stakeholders are not included in the final consultation process, the matter will not remain a business issue alone but will become a case of overriding public interest. In that scenario, we may be constrained to approach the High Court for appropriate relief to safeguard the rights of consumers and stakeholders at large,” the Association maintained.

Copyright Business Recorder, 2025