2,276 Used Cars Reached Pakistan in September: Automakers Say Rs3.4 Billion of Local Parts Business Is at Risk

Used car imports in Pakistan jumped to 2,276 vehicles in September, commerce ministry data shows, reigniting a fierce dispute between local automakers and vehicle importers over relaxed import rules and lower duties. The September figure is nearly fifty times the 48 cars that arrived in May, and almost all of last month’s vehicles came through the Gift Scheme for overseas Pakistanis.

Local manufacturers say the rebound threatens an industry of 13 assemblers and more than 300 parts makers, while importers argue the competition keeps prices fair and gives buyers better choice.

Why used car imports in Pakistan are rising again

The rebound follows January’s abolition of the Personal Baggage Scheme and tighter controls on overseas Pakistanis’ vehicles. Dealers shifted to the remaining channels, with the Gift Scheme now accounting for the bulk of arrivals. Commerce ministry figures trace the climb month by month:

Two policy changes have made imports cheaper and easier. A senior industry executive told Dawn that the 2026-27 budget cut duties on completely built units by 20 to 25 percent, lowering import costs, and that a one-year limit on ownership transfers is going unenforced in some cities.

Then, on Sept 30, the Engineering Development Board removed the minimum capital requirement for importers, so any tax-registered individual or firm can now bring in used vehicles without SECP registration, with inspections shifted from the EDB to the PSQCA.

Parts makers count the cost at Rs3.4 billion

The loudest alarm comes from vendors. Abdul Rehman Aizaz, chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers, said locally assembled vehicles carry up to 60 percent local parts by value, about Rs1.5 million per car. He put September’s tally at a potential Rs3.4 billion loss in local parts production, with jobs and the documented economy at stake.

Importers defend the competition

Car dealers and importers reject the criticism. Mian Shoaib Ahmed, chairman of the All Pakistan Car Dealers and Importers Association, said imported vehicles go through pre-shipment inspection in Japan, where most are sourced, by accredited companies, and that they fulfil genuine local demand. He welcomed the recent regulatory changes, saying Gift Scheme and commercial-channel imports are likely to rise further.

They argue Pakistan needs a competitive market, noting the Japanese assemblers are not yet ready for full competition and the new Chinese entrants have yet to build a strong presence.

What happens next

The row is unfolding as the 2021-26 Auto Industry Development and Export Policy has expired, and the industry is waiting for its successor to settle the direction of import policy. Manufacturers want the government to treat used imports as a threat to localisation, jobs and the tax base; importers want easier access to keep the market competitive.

For now, the September numbers suggest the tighter rules of early 2026 have not stopped the flow. The coming months will show whether the government treats the new mix of lower duties, simpler entry and a fresh inspection regime as the new normal.

FAQ

How many used cars did Pakistan import in September 2026?

Commerce ministry data puts the figure at 2,276 vehicles, of which 2,238 arrived under the Gift Scheme.

What is the Gift Scheme for car imports?

A facility letting overseas Pakistanis send vehicles home, it now accounts for almost all used-car arrivals.

Why do local automakers oppose used car imports?

Manufacturers say each imported used car replaces a locally assembled vehicle with up to 60 percent local parts. PAAPAM puts September’s potential loss to parts makers at Rs3.4 billion, with jobs and the documented economy at risk.

What changed in Pakistan’s used car import rules in 2026?

January’s abolition of the Personal Baggage Scheme first pushed imports down. The 2026-27 budget then cut CBU duties by 20 to 25 percent, and a Sept 30 notice removed the minimum capital requirement for importers while shifting inspections from the EDB to the PSQCA.