Import of used cars: Auto industry concerned over surge

LAHORE: The import of used cars under Gift Scheme has witnessed a whopping increase in just four months as total seven units were imported in May and till September the number has reached the 2238 units.

According to data made available, total seven units of used cars were imported in May and 806 units were imported in June. In July, the figure increased to total 1876 units and it was 1406 units in August. The number reached to 2238 units in September.

The cars imported under baggage scheme were under 50 units in every month of the said period while cars imported under Transfer of Residence Scheme was quite minimal (just few units every month).

It may be noted that the Gift Scheme allows eligible overseas Pakistanis to send a used vehicle to a qualifying family member in Pakistan, subject to customs duties, taxes and import-policy conditions. The relevant notification is SRO 61(I)/2026, dated 15 January 2026. “This is very alarming situation. In fact, it is quite damaging for local auto industry especially at the time when the whole industry is under huge pressure,” said Abdul Rehman Chairman PAPAAM, adding that local auto industry is at loss why the government is allowing commercial import and misuse of Gift Scheme when there are dozens of new and old OEMs are operating in the country and about 60% parts are manufactured locally.

“This increasing figure of import shows blatant misuse of Gift Scheme and sadly the government has failed to control it despite that this is creating big issues for local auto industry and its part suppliers said Abdul Rehman.

He added that the local auto manufacturers already posted more than 20 percent drop in their sales in September on Year on Year basis while on a month on month basis total volumes declined by 21 percent. “It means part suppliers are missing out a business opportunity of billions of Rupees on monthly basis. The local auto industry is already facing demand issues,” said Rehman, adding that flawed National Tariff policy (based on incorrect data) pushes for lower CBU import tariffs and resultant non existing room of cascading for parts and local raw material manufacturers.

He said that imports had briefly declined following the abolition of the personal baggage scheme, but consumers have since shifted to the gift scheme, which accounted for 98 percent of total used-vehicle imports in Sep-2026.

Copyright Business Recorder, 2026