Pakistan’s auto industry in peril: Used car imports jump to 20pc from 7.5pc in 2020-23: EDB

ISLAMABAD: The share of used car imports in the country has jumped from 7.5 percent in 2020-23 to 20 percent in 2025, which is posing a serious threat to local manufacturing, investment, and employment.

In a briefing to the National Assembly Standing Committee on Industries and Production held here on Tuesday under the Chairmanship of Syed Hafeezuddin, the officials of the Engineering Development Board (EDB) said that in contrast the imports of used cars in regional countries such as Thailand, India and Indonesia are negligible 0.3-1.2 percent as the governments of these countries have imposed a strict tariff and administrative controls.

The EDB officials said that at present, six tractor manufacturing units are installed in Pakistan, and of these, five units are operational.

Locally assembled, imported old vehicles: EDB issues safety, quality and environmental standards

The combined capacity of tractor manufacturing in Pakistan stands at 111,2000, adding that in recent years, the production has declined owing to various reasons, and from January 2024 to June 2025 stood around 19 percent.

The panel also strongly recommended that the EDB issue an import authorization and a manufacturing certificate to the tractor manufacturing firms for one year. After detailed deliberations on the tractor manufacturing companies that are operational in the province of Sindh, the committee recommended that EDB issue an import authorization and manufacturing certificate for one year to the firm operating in Sindh.

The standing committee discussing matters related to the Utility Stores Corporation (USC) has urged the government to immediately release the salaries of utility store employees. The National Assembly’s body was of the view that it is unacceptable that the employees of the USC have been deprived of their rightful earnings for such an extended period. However, the committee recommended that the Ministry of Industries and Production should take decisive action to release these five months’ salaries immediately.

While the report of the sub-committee of the Standing Committee on Industries and Production was presented by its Convener, Romina Khurshid Alam, MNA, before the Committee for its consideration and adoption, it was pointed out that the salaries of the employees of the Utility Stores Corporation have not been released for the last five months.

The committee expressed grave concern over the prolonged non-payment, stressing the severe financial hardship it is causing to hundreds of families.

Copyright Business Recorder, 2025