Significant increase in used car imports in Pakistan

Imports of used vehicles into Pakistan surged in September 2026, with 2,276 vehicles imported in a single month. According to data from the Ministry of Commerce, the majority of these vehicles arrived in the country under the "gift scheme."

This rise in used vehicle imports follows a significant decline observed earlier in the year. While only 48 vehicles were imported in May, imports began to pick up in June, eventually reaching 2,276 in September.

Concerns of the Local Auto Industry

In January of this year, the government abolished the "Personal Baggage Scheme" and tightened the regulations governing vehicle imports by overseas Pakistanis.

The recent spike in imports has raised concerns among local vehicle assemblers and auto parts manufacturers. Industry representatives argue that the continuous increase in imported vehicles could negatively impact the demand for locally manufactured vehicles and components.

They suggest that lower duties on Completely Built-Up (CBU) vehicles in the 2026-27 fiscal year budget may also be contributing to the rise in imports.

Importers' Perspective

Conversely, importers maintain that the import of used vehicles fosters competition and expands consumer choice. They assert that importing vehicles that meet government criteria is a legal practice and that such vehicles undergo inspection by authorized agencies.

Likelihood of Further Increase in Imports

It is anticipated that the trend of rising used vehicle imports will continue in the future. New regulations issued by the Engineering Development Board on September 30 have relaxed certain conditions regarding the commercial import of used vehicles.

While this development has expanded the range of imported vehicle options available to consumers, it has also intensified the debate concerning its potential impact on the local auto manufacturing and auto parts sectors.