KARACHI: The Competition Commission of Pakistan (CCP), after a comprehensive research, has issued a report, in which it has recommended to the legislators to open commercial import of used cars.
The CCP, through its Competition Impact Assessment study of the automobile sector in the country, has suggested opening of auto import policy on the basis of auto tariff regime that had been stagnant since 2007 in Pakistan. As per auto dealers, this step would help decrease prices of used cars on commercial imports by 25%.
As CCP is mandated to carry out research to improve the understanding of competition issues facing the economy of Pakistan, the watchdog carried out a detailed research in which it found that the prevalent scheme of allowing used car imports under the ‘gift and personal and baggage schemes’ adds to transactional costs in the form of extralegal formalities, in addition to high import duties. This practice should be replaced with an open commercial import of used cars, the report said.
It is pertinent to mention that new Auto Industry Policy (AIDP) II is expected to be announced by the end of December.