Local automakers voice concerns as imports of used cars surge in Sept

Local automakers voice reservations as imports of employed cars surge in Sept.

Key points

• Kalbe Ali Published October 3, 2026 Updated October 3, 2026 10: 45pm.
• While 2, 276 vehicles were imported in September, with 2, 238 under the Gift Scheme, august saw a total of 1, 445 vehicle imports.
• In June, a total of 843 vehicles were imported, including 806 under the Gift Scheme.
• Ahmed, additionally a member of the Federation of Pakistan Chambers of Commerce & Industry's (FPCCI) executive committee, stressed there was a demand for employed cars in Pakistan.
• Ahmed referred to a notification by the Engineering Development Board (EDB), dated Sep 30.

Kalbe Ali Published October 3, 2026 Updated October 3, 2026 10: 45pm. Join our Whatsapp Channel. Add Dawn as a trusted source.

ISLAMABAD: Imports of applied cars surged in September after easing of regulations, inviting criticism from local manufacturers while importers claim that the move will bring competition in the auto sector.

After a brief decline due to the administration abolishing the Pers­onal Baggage Scheme and applying restrictions to control misuse of employed car schemes for overseas Pakistanis, imports of applied cars have kicked off surging again.

In the month of September, a total of 2, 276 vehicles were imported under the Gift Scheme as the strict restrictions under the Baggage Scheme continue, according to data from the Commerce Ministry.

Meanwhile, the figures show that in May, only 48 applied cars were imported mainly through the baggage scheme. Nevertheless, the situation kicked off to change from June onwards.

In June, a total of 843 vehicles were imported, including 806 under the Gift Scheme. The figure reached 1, 938 in July, with 1, 876 cars under the Gift Scheme.

According to A senior executive of the auto industry, the reduction in duties on completely built units (CBUs) by 20-25 per cent in the 2026-27 budget has reduced the import cost.

"We have reports that a one-year restriction on transfer of ownership is not being implemented in some cities, due to which this business is flourishing again, but at the cost of the domestic auto industry which consists of 13 assemblers and over 300 auto parts manufacturers, " the executive continued.

Auto parts vendors expressed their reservations too, claiming that auto production had finally begun to show an rise after a gap of three years. It was additionally contributing to Pakistan's expansion in the large-scale manufacturing (LSM) sector.

"Locally produced cars contain up to 60pc local parts by value, amounting to an average of Rs1.5 million per vehicle, and import of 2, 276 used vehicles meant loss of Rs3.4 billion of local parts production which creates jobs and operates in the documented economy, " remarked Abdul Rehman Aizaz, chairman of Pakistan Asso­ciation of Automotive Parts and Ac­­cessories Manufacturers (Paa­pam).

While by contrast, imports of applied cars were being encouraged, he termed it unfair that, on the one hand, the proposed auto policy was slashing import duties on new cars.

"Ultimately, Pakistan is moving towards a market dominated by imported new and used vehicles with no industrial activity, " the Paapam chairman remarked, terming the business of employed cars completely unregulated. Competition in auto sector.

On the contrary, importers claim that Pakistan needs to have a competitive economy and that importing applied cars was completely legal if done as per the administration regulations.

"Currently, all imported vehicles are subjected to pre-shipment inspections by the accredited companies based in Japan as most of the used cars are imported from that country, " remarked Mian Shaoib Ahmed, chairman of All Pakistan Car Dealers & Importers Association.

While Japanese car assemblers in the country were not yet ready for the competitive environment, he contended that new Chinese entrants have yet to create their mark in Pakistani markets.

Notably, the FPCCI member lauded the administration for recent changes in the vehicle import regime and went on that applied car imports under the Gift Scheme and commercial imports will continue to rise in the coming months.

Ahmed referred to a notification by the Engineering Development Board (EDB), dated Sep 30. It would relax the criteria for imports of applied vehicles.

For context, the changes in the recent EDB notification against the earlier notification included the removal of a clause for the minimum capital requirement of a firm importing employed cars, and now, any tax-registered individual or firm not even registered with the Securities and Exchange Commission of Pakistan (SECP) can import vehicles.

Notably, the pre- and post-shipment inspection will be conducted through the Pakistan Standards and Quality Control Authority (PSQCA) instead of the EDB.

Nevertheless, the PSQCA chief executive officer stated that inspection was not done directly under or by the authority, but through its registered inspection agencies.

At present, only two local inspection agents have been registered with the PSQCA; they are the representatives of firms accredited with the Japanese Foreign Principals Inspection Agencies.

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Kalbe Ali is a senior staff reporter for Dawn based in Islamabad, with almost 20 years of field reporting experience. As well as religious affairs, he covers a diverse range of topics, including the internet, IT and telecom sectors.

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