IMF Demand for Used Vehicles Could Derail EV Future

The International Monetary Fund (IMF) has been said to have pushed Pakistan to relax bans on used car imports, a step that could undermine the nation’s efforts towards encouraging electric vehicles (EVs). The Ministry of Industries and Production, led by Gohar Ejaz, was concerned that this policy change would derail Pakistan’s automobile localization policies as well as its EV growth aspirations.

The Engineering Development Board (EDB) pointed out that the country’s local manufacturers such as Indus Motors, Atlas Honda LTD, and Pak Suzuki Motor Company Limited would be dealt significant blows, potentially resulting in job losses and a decline in investor sentiment.

Experts caution that the opening up of used car imports under personal baggage schemes would inundate the country with high-emission, old cars, pitting against the intent laid down in the National EV Policy.

While this IMF-supported proposal frightens the Pakistan Automotive Manufacturers Association (PAMA) as it will reverse all the years of development by local producers and ecosystem players, the debate grows more heated between economic relief and sustainable growth with the nation poised at a crossroads in determining the future of its auto landscape.