The paper plates, around 10,000 of which have been issued, are accepted only in Kosovo, a predominantly ethnic Albanian country which broke away from Serbia in 1999, and in neighbouring Albania.
Further obstacles to travel are the last thing the impoverished and isolated country needs as its 1.8mn citizens, many of whom work abroad, struggle to drum up business around the world.
“I was supposed to go to Belgrade today to apply for an Indian visa but I can’t go with my car,” said Tefik Maliqi, 60, a businessman.
Campaigners blame corrupt public procurement practices for the failure to source metal plates.
Bidders in the failed tender to manufacture new licence plates complained of an opaque and irregular process.
“I paid €15 ($16.80) for paper plates and can’t go anywhere with them. Someone in the government should resign over this,” said Samir Fejziu, 38, pointing to his rain- and mud-spattered plates.
Since formally declaring independence in 2008, Kosovo’s economic development has been slow, with the European Union and the World Bank blaming corruption and isolation for its sluggish growth.
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