I guess I'll have to agree with you there. Theoratically, you are absolutely correct.
But don't you think the reason for them being allowed is legitimized by the lack of action taken against their existence? Now why should there be an action? Here's why;
Peshawar : .......in 2002, when 75 per cent of a total 1,150 vehicles examined were found to be stolen, sources revealed on Friday.
In 2003, 60 per cent of a total 950 vehicles received for examination were found stolen, the sources said, adding that the decline showed police's failure and modern techniques used by the car-lifters while stealing the vehicles.
Later :
...... lucrative markets for these cars exist also in the Provincially Administrated Tribal Area (Pata), owing to non-extension of the Custom Act there. Thus the stolen vehicles are driven to Pata, where they ply on the roads marked as non-custom paid (NCP)
NCP vehicles, despite being legal in some parts of the coutry as you mentioned, are a curse. And dealing with them in turn leads to getting yourself involved in the illegal chain - be it car theft, or smuggling.
That is probably the reason for them being discouraged at Pakwheels.