Car buyers in Pakistan have long faced frustrating delivery delays, but did you know that you’re legally entitled to financial compensation for late deliveries?
Under an existing law, automakers must pay KIBOR+3% per annum to customers if a vehicle is not delivered within 60 days of booking. This rule, enforced by the Federal Board of Revenue (FBR), ensures that buyers are not left waiting indefinitely without compensation.
What the Law Says About Late Car Deliveries
To protect consumer rights, the FBR issued SRO 837(I)/2021, making it mandatory for car manufacturers and importers to compensate customers in case of delivery delays.
This policy falls under the Automotive Development Policy (ADP) 2016-21, which grants concessionary customs duty to new entrants for a period of five years from the issuance of their first manufacturing certificate by the Engineering Development Board (EDB) or until June 30, 2026, whichever comes first.
However, this benefit comes with a responsibility—if an automaker fails to deliver a booked vehicle within 60 days, they must compensate the customer with KIBOR+3% on the total deposited amount.
Automakers Must Report Late Deliveries
To ensure compliance, the FBR has made it compulsory for automakers to submit bi-annual reports to the Engineering Development Board (EDB) or the Input-Output Coefficient Organization (IOCO). These reports must detail the amounts reimbursed to customers for delayed deliveries.
This rule is meant to hold car manufacturers accountable and ensure they prioritize timely deliveries.
What This Means for You as a Car Buyer
If you have booked a vehicle and your dealer is unable to deliver it within 60 days, you are legally entitled to compensation. Many buyers are unaware of this right and end up waiting months without any financial relief. Now, you can claim KIBOR+3% on your deposited amount!
Here’s what you should do if your car delivery is delayed:
Check your booking date and delivery timeline
Contact your dealer and inquire about compensation
Keep records of all payments and receipts
Demand your rightful compensation in case of a delay
This regulation ensures that customers are not at a loss due to manufacturing delays, supply chain issues, or dealership inefficiencies.