Islamabad hopes overseas Pakistanis won't misuse car import facility
31 July 2005
ISLAMABAD — Commerce Minister Humayun Akhtar has said that only the overseas Pakistanis had been allowed to import used cars and hoped that the facility would not be misused.
Addressing a news conference along with minister for Industries and Production Jhangir Tareen, the commerce said that government has no intention to raise revenue by allowing the overseas Pakistanis to import second hand cars.
He said that government was committed to extend every possible support for the development of extension in the auto sector industry.
The commerce minister said that only procedures were relaxed to help the overseas Pakistan to import cars under these schemes.
Answering a question, the minister for industries said that a quality check would be introduced at ports to allow import of only those cars, which would meet the domestic standards.
He further said that due the reduction in import duties in the budget 2005-06, it was expected that around 10,000 to 12,000 new cars would be imported this year to meet the local demand.
He also said that Pakistan has decided not to seek any further waiver for the continuation of deletion programme for the local automobile industry under the World Trade Organisation (WTO) agreement for trade related investment measures (TRIMs).
Tareen said that government has decided to give tariff protection to local automobile sector rather to seek further waiver for the implementation of the TRIMs agreement.
To another question, he said that the Engineering Development Board (EDF), Customs Department along with vendors and auto assemblers were working to work out a comprehensive tariff regime to be applicable on import of parts and accessories for the automobiles.
The minister said that these tariff would be finalised in consultation with all the stakeholders.
According to the WTO agreement on TRIMs, which came into force on January 1, 1995, all WTO member countries were required to phase out trade distorting measures such as deletion programmes. Developing countries were given an extra five years to do so. At the expiry of five years grace period, Pakistan had sought a further waiver till December 31, 2003 subject to the condition that Pakistan would not ask for further extension in this regard.
Commerce Minister Humayun Akhtar Khan said that the amendments have been made to the three schemes for Pakistanis residing abroad--gift, personal baggage and transfer of residence — in order to facilitate them in the import of used cars.
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