ISLAMABAD: The government has enacted two significant decisions through the issuance of Statutory Regulatory Orders (SROs), aiming to facilitate certain trade practices. Firstly, the import of vehicles has been extended to a distance of up to 2,000 kilometers from the previous limit of 500 kilometers. Secondly, the export of flour derived from imported wheat has been permitted.
Under SRO 430 issued by the Ministry of Commerce, an amendment to the Import Policy Order 2022 has been introduced, allowing the importation of vehicles with a mileage of up to 2,000 kilometers, as opposed to the previous limit of 500 kilometers. This adjustment has elicited curiosity among the public, particularly regarding its timing, occurring just months before the 2024-25 budget.
Previously, a newly imported car was defined as one with a mileage of 500 kilometers after booking from an overseas manufacturing company. Now, newly imported cars are defined as those with a mileage of up to 2,000 kilometers, without being classified as used cars. Customs officials are mandated to ensure that the imported cars are the latest models manufactured in the year of import in Pakistan.
The rationale behind this decision stems from the challenge of importing specialized vehicles from China, such as those used for road cleaning, which often have a mileage ranging from 800 to 1,500 kilometers. Customs officials previously barred their import, considering them used vehicles. The decision to extend the allowable mileage to 2,000 kilometers was influenced by such scenarios, aiming to facilitate smoother import processes.
Moreover, in a separate development outlined in SRO 433(1) 2024, the government has authorized the export of flour produced from wheat exclusively for export under the Export Facilitation Scheme, 2021. This decision, supported by the Economic Coordination Committee (ECC), aims to meet the rising demand for fine flour in neighboring countries, including Afghanistan.
During the current fiscal year, the Ministry of Food and Agriculture has imported significant wheat worth $1.6 billion to meet the domestic consumption demands. Despite this, the ministry proposed the export of flour which was approved by the ECC. However, it is necessary to review the domestic strategic reserves, especially with the upcoming wheat harvests in Sindh and Punjab. The harvests are expected in April and May/June respectively, and they are anticipated to mitigate any potential shortages.
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