New Import Law Will Cost Car Industry Rs. 50 Billion

In practice, the Pakistan Automotive Manufacturers Association (PAMA) has asked the administration to suspend new rules governing the commercial import of employed vehicles, warning that the changes could cause losses of more than Rs.

Key points

• It further facilitates commercial imports under SRO 2443(I)/2025, allowing PSQCA-registered firms to inspect imported employed vehicles.
• According to PAMA, a return to fiscal year 2025-26 import volumes could result in losses exceeding Rs.
• The association remarked the revised rules relaxed safeguards introduced under an earlier notification issued in September 2025.
• The notification additionally transfers pre-shipment and post-shipment inspection responsibilities from the EDB to the Pakistan Standards and Quality Control Authority (PSQCA).
• The association has asked the administration to review the September 30 notification and suspend its implementation until meaningful consultations are held with automakers and other stakeholders.

In a letter dated October 6 to the prime minister's adviser on industries and production, PAMA triggered concern over an Engineering Development Board (EDB) notification issued on September 30, 2026.

Notably, the association remarked the revised rules relaxed safeguards introduced under an earlier notification issued in September 2025. Lucky Cement, Hubco, Kohat Cement Form Consortium to Acquire GEPCO.

Under the revised framework, regulation is limited to applied vehicles, whereas the previous rules covered both new and employed completely built units.

Notably, the new notification additionally removes the minimum capital requirement for importing businesses and the requirement for adequate after-sales service, without establishing an effective product recall mechanism.

Notably, the notification additionally transfers pre-shipment and post-shipment inspection responsibilities from the EDB to the Pakistan Standards and Quality Control Authority (PSQCA).

PAMA cited Ministry of Commerce data showing that commercial imports of applied vehicles rose from 48 units in May 2026 to 843 in June, 1, 938 in July, 1, 445 in August and 2, 276 in September.

For context, the association cautioned that the removal of regulatory safeguards could accelerate the rise.

In practice, the association remarked the changes come as the domestic automotive industry faces uncertainty over the forthcoming Auto Policy and National Tariff Policy 2025-30, alongside proposed tariff reductions intended to rise competition and market efficiency.

While local manufacturers bear costs related to plant investment, localization, technology, employment, quality systems, taxation and regulatory compliance, PAMA additionally argued that commercially imported employed vehicles benefit from depreciation advantages of up to 36 percent.

According to PAMA, a return to fiscal year 2025-26 import volumes could result in losses exceeding Rs. 50 billion for the domestic automotive industry and its vendor network.

It cautioned that continued expansion in applied vehicle imports could affect investment, localization, employment, administration revenue and the wider automotive supply chain. 16 GT Roads, Highways and Motorways Set to Open.

Meanwhile, the association has asked the administration to review the September 30 notification and suspend its implementation until meaningful consultations are held with automakers and other stakeholders.

PAMA remarked the regulatory framework should protect consumer interests and encourage competition without placing domestic manufacturers at a disproportionate disadvantage. Stay Connected with ProPakistani.

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Taken together, the developments around new Import Law Will Cost Car Industry Rs. 50 Billion point to a situation that is still moving, and the coming days should bring more clarity.