The government of Pakistan Tehreek-e-Insaaf to impose a ban on the business of reconditioned cars that may directly affect the general public.
It was easy for the public to purchase good reconditioned vehicles at lower prices, but after imposing the ban, it would not be possible. It may also directly affect the automobile industry in Pakistan, but positively.
According to some experts, the ban will increase the demand of the domestic cars.
But according to the government, the decision is made to flourish the car industry of Pakistan. It will also help the international car industry stakeholders to enter Pakistan and install the car factories here.
If any person wants to import a car, he should pay the money from his bank account, ECC decided. Also, the person has to show the bank encashment certificate.
According to the government, the business of reconditioned vehicles was not genuine. And the foreign exchange money that was used to import these reconditioned cars were not sent by the Pakistani banks on the government level.
Every year, an estimated amount of one billion dollars were sent from Pakistan on the import of these cars. Around seventy-five to eighty thousand cars were imported, and the government was generating 100 billion rupees in taxes.
But after the imposition of the ban, the government will not be able to collect that hefty tax amount.