Commercial imports of used vehicles into Pakistan reached 2,276 units in September, up from just 48 in May, according to Ministry of Commerce data cited by the Pakistan Automotive Manufacturers Association (PAMA). The group says new import rules could cost local carmakers and their suppliers more than Rs. 50 billion.
The monthly run, per PAMA, was 843 in June, 1,938 in July and 1,445 in August before the September jump.
The rule change
In a letter dated October 6 to the prime minister’s adviser on industries and production, PAMA objected to a notification the Engineering Development Board (EDB) issued on September 30, 2026. The association says it relaxes safeguards introduced under an earlier notification in September 2025.
Its complaints are specific. Regulation now covers only used vehicles, where the earlier rules covered both new and used completely built units. The minimum capital requirement for importing companies is gone, as is the requirement for adequate after-sales service, and no effective product recall mechanism replaces them. Pre-shipment and post-shipment inspection moves from the EDB to the Pakistan Standards and Quality Control Authority (PSQCA), and the notification eases commercial imports under SRO 2443(I)/2025 by letting PSQCA-registered companies inspect used vehicles.
The cost argument
PAMA argues that commercially imported used cars enjoy depreciation advantages of up to 36 percent. Local manufacturers, it says, carry the costs of plant investment, localization, technology, employment, quality systems, taxes and compliance. If volumes returned to fiscal 2025-26 levels, losses could pass Rs. 50 billion for the industry and its vendor network. Continued growth in used imports, it warned, could hit investment, localization, employment, government revenue and the wider supply chain.
The timing adds to the industry’s unease. Automakers are still waiting on the forthcoming Auto Policy and the National Tariff Policy 2025-30, alongside proposed tariff cuts meant to sharpen competition.
PAMA has asked the government to review the September 30 notification and suspend it until automakers and other stakeholders have been properly consulted. The rules, it said, should protect consumers and encourage competition without putting domestic manufacturers at a disproportionate disadvantage.
