Pakistan recorded a sharp increase in used vehicle imports during September 2026. The rise follows recent changes to the country’s vehicle import rules.
Commerce Ministry data shows that 2,276 vehicles entered Pakistan during September. Of these, 2,238 arrived under the Gift Scheme.
The latest figure represents a significant increase compared with May. Only 48 vehicles were imported during that month.
Used Car Imports Rise Rapidly
Pakistan has witnessed a steady recovery in Car imports since June.
Imports increased to 843 vehicles in June. Around 806 of those vehicles entered through the Gift Scheme.
The number climbed further to 1,938 vehicles in July. This included 1,876 vehicles imported under the Gift Scheme.
Imports stood at 1,445 vehicles during August. They then increased to 2,276 units in September.
The rebound follows government changes aimed at regulating vehicle imports.
The government abolished the Personal Baggage Scheme and tightened other rules. The measures were designed to prevent misuse of facilities available to overseas Pakistanis.
Local Auto Industry Raises Concerns
Local manufacturers and auto-parts companies have expressed concerns about rising used Car imports.
Industry representatives believe cheaper imported vehicles could affect local production and employment.
The 2026-27 budget also reduced duties on completely built units by 20% to 25%. This has lowered costs for imported vehicles.
PAAPAM Chairman Abdul Rehman Aizaz said locally assembled vehicles contain up to 60% locally produced parts by value.
He valued these locally sourced components at around Rs1.5 million per vehicle.
Based on this estimate, September imports could represent around Rs3.4 billion in potential lost local parts production.
He warned that growing imports could also affect jobs and Pakistan’s documented economy.
Importers Defend Used Vehicle Market
Vehicle importers disagree with concerns raised by domestic manufacturers.
They argue that legally imported vehicles increase competition and provide consumers with more choices.
All Pakistan Car Dealers & Importers Association Chairman Mian Shaoib Ahmed highlighted inspection requirements for imported vehicles.
He said vehicles undergo pre-shipment inspections through accredited agencies. Japan remains a major source of used vehicles imported into Pakistan.
Ahmed also welcomed recent regulatory changes. He expects imports through commercial channels and the Gift Scheme to increase further.
New Rules Ease Vehicle Imports
A September 30 notification from the Engineering Development Board also relaxed import requirements.
The minimum capital requirement for companies importing used vehicles has been removed.
Tax-registered individuals and businesses can now import vehicles without registration with the Securities and Exchange Commission of Pakistan.
The inspection mechanism has also shifted from EDB to the Pakistan Standards and Quality Control Authority.
Inspections are conducted through agencies registered with PSQCA.
The surge in Car imports is likely to intensify debate within Pakistan’s automobile industry.
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Consumers may benefit from greater choice and stronger competition. However, local manufacturers remain concerned about production, employment and the domestic parts supply chain.
