KARACHI: Imports of used cars continue to thrive, showing a sharp jump of 30 per cent in the last six months.

According to data of Pakistan Bureau of Statistics (PBS), import of completely built units (CBUs), comprising more than 95 per cent used cars, swelled to $148.5 million in July-December 2015-16 as compared to $114m in 2014-15.

However, former chairman Pakistan Association of Automobile Parts and Accessories Manufacturers (Paapam), Aamir Allawala said that a total of 41,257 vehicles were imported in 2015 including 34,765 passenger cars — of which 25,000 were small ones — 4,036 SUVs and 2,456 pickups/vans.

Almost 5,000 units of hybrid vehicles were imported in 2015, while over 4,000 SUVs were imported affecting the locally produced Toyota Fortuner, he said in a statement.

He termed the rising imports of used cars as alarming at a time when the government is striving to attract foreign investors under the upcoming auto industry development plan.

He said the government should be aware that the domestic auto sector has led the LSM growth in the country and therefore needs to be encouraged.

The industry, he said, has urged the government to increase applicable duty by 20pc on the import of small cars, below 1,000cc as these cars are under-taxed.

The government should reduce age limit from five years to three years for minivans, and increase applicable duty by 20pc on the import of minivans, below 1000cc, Aamir suggested.

There is a need to reduce the duty rebate from 50pc to zero on the import of hybrid vehicles considering that drop in oil prices which has eliminated the need to encourage such vehicles.

Moreover, the government should reduce the allowable age limit from five to three years for SUVs.

Published in Dawn, January 30th, 2016