- Two import car schemes were scrapped under the IMF-Pakistan deal.
- The government is tightening the transfer of residency scheme for used cars.
- Five-year-old used cars allowed under stricter import conditions.
Pakistan and the International Monetary Fund (IMF) have agreed to abolish two tax-free car import schemes and tighten regulations on the third scheme as part of efforts to curb abuses and improve transparency in the import regime.
Both sides reached consensus to discontinue baggage and gift schemes, while stricter orders will be imposed on the residency transfer program, which allows overseas Pakistanis to import vehicles when returning home, The news reported.
While commercial importation has been allowed for five-year-old used cars, its conditions will be strict, with tight security guards.
Pakistan and the IMF are expected to conclude review talks on Wednesday for the completion of the second review under the $7 billion Extended Fund Facility (EFF) and the first tranche of $400 million under the $1.4 billion Resilience and Sustainability Facility (RSF).
The IMF has set a deadline to seek approval from the Economic Coordination Committee (ECC) of the Cabinet for the abolition of two projects and the tightening of the third in the current month.
In the tariff rationalization plan, both sides agreed that both regimes under baggage rules and the gift system for importing cars would be abolished. For the third program, Residency Transfer, vehicles will only be imported from a country where the individual has stayed for at least one year, and misuse of this program will be reduced.
An official said that all vehicles, whether from Japan or the UK, are first imported to Dubai and then brought to Pakistan, so misuse of imported cars should be reduced.
Pakistan and the IMF are still working to evolve a consensus on the release of the GCD assessment report, which remains a bone of contention between the two sides. According to insiders, the government has established a task force to conduct a detailed review of the vague anti-corruption framework and shared it with the IMF. The task force recommended that the FBR should inform the draft rules on “Declaration of assets of civil servants serving in basic pay scale 17-22 and their spouses”.
It also recommended making amendments to the Civil Servants Act 1973 to enable the publication of assets and liabilities of civil servants; make changes to the Elections Act to require unelected advisers and special assistants to the Prime Minister to provide their statement of assets and liabilities; and make necessary amendments in the NAB Ordinance and the FIA Act to ensure clear definition of mandate, prepare a joint offense list and establish coordination mechanisms between the two agencies to work harmoniously on offenses where both have jurisdiction.
Other recommendations include training on jurisdictional boundaries to officers of the NAB, FIA and provincial anti-corruption establishments (ACEs); arrange for the repatriation of FIA inquiries posted at airports to process immigration and carry this responsibility to another force; and invest in technology, capacity building and training of FIA, NAB and provincial ace investigators to bring them on par with their regional counterparts.
Additionally, the task force advised to conduct awareness campaigns to inculcate a culture of integrity among public servants and educate the public on their right to request disclosure of public information under the Right to Information Act and the regulatory framework for reporting corrupt practices; to make provision for the appointment of lawyers through open advertisement based on specific expertise to ensure quality prosecutions and for the appointment of independent members of the legal fraternity in the special courts on judicial assignments; and empower provincial anti-corruption establishments to handle money laundering cases at the provincial level.
The recommendations also include the creation of a central coordinating forum for investigative assistance, forensics, intelligence sharing and resolution of jurisdictional issues; ensure that internal access heads are appointed within the ministries and divisions required by the Public Financial Management Act; and ensure strict compliance with the Public Enterprises (Governance and Operations) Act, 2023, and that government entities are managed in accordance with section 36 of the Public Finance Management Act, 2019.
