Experts warn proposal to ease used car imports could undermine climate goals

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LAHORE: Recent recommendations of the International Monetary Fund (IMF) to encourage the import of used cars have been criticized by environmental experts and policy analysts, arguing that such a move could damage the country’s clean and sustainable energy solution.

The IMF has called on Pakistan to allow high taxes and duties on locally manufactured vehicles to free the country’s highly secure automotive sector and allow trade import of used cars. Used vehicles are already more than 60 % of car transactions in Pakistan, and experts fear that the proposed changes will further weaken the domestic automotive industry, while increasing chronic air pollution, public health concerns and inadequacy of energy.

“Pakistan is already suffering from a serious transportation crisis,” said Dr. Shafiq Ahmad Kamboh, a environmental policy analyst. This sector is among the rapidly increasing assistants in urban air pollution and greenhouse gas emissions. He added, “Allowing the import of used cars, many of which lacks modern emission technologies, will only damage the burden.” Dr. Kamboh termed the IMF’s position as contradictory, saying that while the company recently approved a $ 1.4 billion loan to support Pakistan’s climate flexibility, it promotes policies that can re -introduce high -rise vehicles in the market.

Dr Anil Salman, the economic security chair of the Islamabad Policy Research Institute (IPRI), has warned that the long -term results of used car import will be far greater than any short -term financial benefits. “Old, high emission vehicles reduce air quality under the Paris Agreement and damages Pakistan’s promises. Without carbon pricing or abrasive privileges, these imports will not have environmental impacts,” he said.

He further criticized the IMF’s trade liberalization agenda for transmitting environmental burden to inadvertently developed countries. Dr. Salman said, “Used vehicles imported into Pakistan often serve as an expansion of ‘cash for cloners’ schemes in the global north. These are vehicles that were eliminated under strict emission standards but instead find expansed use in countries like Pakistan – without essential environmental security agencies.

Environmental scientist and educational Dr. Mohammad Irfan Khan agreed that the proposed policy shift would potentially cause more environmental damage than economic good, unless strong rule was supported.

Experts fear that the increase in imports of older vehicles can eliminate the progress made under Pakistan’s clean energy transfer, which pushes current challenges related to air pollution, public health and incompetence. According to the IPRI, the transport sector only contributes to 43 % of aircraft emissions in Punjab. The United Nations Environmental Program (UNEP) has highlighted that the export of older, pollution vehicles to developing countries increases environmental collapse and health risks.

To reduce these effects, environmentalists are calling on the government to re-consider the National Electric Vehicle Policy (2020-2025), which targets 30 % of vehicles by 2030. Strengthening current privileges-such as reducing customs responsibilities, tax exemptions, and further strengthening the ECE.