Used cars’ import: PAMA voices its concerns over EDB notification

KARACHI: Pakistan Automotive Manufacturers Association (PAMA) has shown serious concerns over the EDB notification regarding the commercial import of used vehicles.

In a letter to Haroon Akhtar Khan, Adviser to the Prime Minister for Industries & Production, Director General PAMA Razi-ur-Rehman stated that the EDB Notification has introduced significant relaxations in the regulatory framework governing the commercial import of used vehicles.

The notification (dated 30 September 2026) has revised the framework by fundamentally diluting the safeguards introduced under the earlier notification (dated 30 September 2025).

The letter stated that the notification restricts the scope of regulation to used vehicles, whereas the 2025 notification covered both new and used CBUs, and it also removes the minimum capital requirement for importing companies and the requirement for adequate after-sales service, without establishing an effective product recall mechanism.

It also shifts pre- and post-shipment inspection responsibilities from EDB to PSQCA and further facilitates commercial imports under SRO 2443(I)/2025, allowing PSQCA-registered companies to inspect imported used vehicles.

DG PAMA said these changes are already having a visible impact on import volumes, as Ministry of Commerce data show commercial imports of used vehicles rose dramatically from 48 units in May 2026 to 843 in June, 1,938 in July, 1,445 in August, and 2,276 in September 2026.

“The removal of key regulatory safeguards is likely to accelerate this trend further,” the letter mentioned.

The letter further stated that PAMA is particularly concerned that this liberalization is taking place at a time when the domestic automotive industry is already operating in an environment of considerable uncertainty, including the forthcoming Auto Policy and National Tariff Policy (NTP) 2025–30, as well as proposals for significant tariff reductions intended to enhance competition and market efficiency.

“At the same time, commercially imported used vehicles continue to enjoy substantial built-in cost advantages, including depreciation benefits of up to 36%.

“This creates a serious asymmetry: local manufacturers are required to invest in plant, localization, technology, employment, quality systems, taxation and regulatory compliance, while commercially imported used vehicles can enter the market without comparable obligations,” the letter stated.

DG PAMA emphasized that this is not merely a matter of competitive pressure and, if left unchecked, the resulting displacement of locally manufactured vehicles could have significant consequences for investment, localization, employment, government revenues, and the sustainability of Pakistan’s automotive manufacturing and vendor base.

The letter mentioned that PAMA estimates that a return to FY 2025–26 import volumes could result in losses exceeding Rs 50 billion for the domestic automotive industry and its extensive vendor network.

More importantly, the DG PAMA noted that continued growth in used vehicle imports could undermine the government’s broader policy objective of developing a competitive, technology-driven and sustainable domestic automotive manufacturing base.

“We therefore respectfully request the government to review the EDB Notification and suspend its implementation pending meaningful consultation with the automotive industry and other relevant stakeholders.

“A balanced regulatory framework is essential, one that protects consumer interests and promotes competition, while ensuring that domestic manufacturers and their substantial investments are not placed at an unintended and disproportionate disadvantage,” the letter added.

Copyright Business Recorder, 2026