Carmakers seek review of used-vehicle imports under gift scheme

The Pakistan Automotive Manufacturers Association has asked the government to review the facility that allows used vehicles to be imported under the gift scheme, saying it is being misused and is hurting local vehicle manufacturing, Express News reported.

In a letter to the prime minister's adviser on industries and production, Haroon Akhtar Khan, PAMA director general Razi-ur-Rahman also urged the government to revisit policies that encourage excessive imports of used vehicles. The association separately asked the Ministry of Commerce to review the scheme immediately and to introduce safeguards against its misuse. It said all import-related measures should be consistent with Pakistan's industrial development goals.

According to the letter, imports of used vehicles under the gift scheme rose sharply through the year. Seven vehicles were imported under the scheme in May 2026, the figure rose to 806 in June, 1,876 in July, 1,406 in August and 2,238 in September. Over the same period, imports under the transfer of residence scheme were negligible, the letter said. In September 2026, the gift scheme accounted for almost 98 percent of all used-vehicle imports.

Rahman said PAMA supports moves to give genuine facilities to overseas Pakistanis, but the scale of the increase suggested the scheme was being used for purposes other than those intended.

He said the auto industry had invested more than Rs1,000 billion to build local manufacturing capacity and to increase the domestic production of parts. Thirteen manufacturing plants are operating in the country, producing more than 31 brands and over 100 models, while local content in several vehicle segments has reached about 60 percent.

The letter warned that continued growth in used-vehicle imports under schemes introduced for personal use was putting local investment at risk and working against the government's stated aims of industrial growth and import substitution.

PAMA also raised concerns over recent tariff changes under the National Tariff Policy. It said significant reductions in import duties, a depreciation allowance of up to 60 percent on fully built used vehicles and proposals to further liberalise imports were narrowing the competitive space for the local industry. Such measures, it said, discourage local manufacturing, technology transfer, employment and future investment.

Rahman said the near-complete shift of the used-vehicle import business from the baggage scheme to the gift scheme within a few months raised serious questions about how vehicles are certified and approved abroad. He urged the government to carry out a comprehensive review of the existing certification, verification and monitoring system to ensure the gift scheme is used for its stated purposes and not as a channel for buying and selling vehicles on a commercial basis.