PAAPAM supports govt’s revised used car import policy

LAHORE: The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) strongly supports the government’s revised used car import policy under the “Motor Vehicles Safety, Quality and Environmental Standards for Imported Vehicles” notification dated September 30, 2025. PAAPAM rejects the objections raised by the All-Pakistan Motor Dealers Association (APMDA), calling them misleading and contrary to national industrial interests.

For years, used car importers exploited regulatory gaps without contributing to local value addition or employment. They benefited from a fixed duty regime on 1300cc vehicles, further reduced by 1 percent per month based on age. These distortions unfairly penalized domestic manufacturers who comply with safety, tax, and employment obligations.

Chairman PAAPAM, Usman Aslam Malik, condemned these favours, noting they enabled under-taxed imports that undermined compliant local producers. He highlighted over Rs60 billion in lost vendor revenue and more than 40,000 displaced jobs in FY2024–25. He stated that APMDA view point ignores the broader industrial impact, support the undocumented economy and serve as a backdoor for laundering black money.

The revised policy introduces structured commercial import with a 40 percent additional duty in year one, reducing annually until FY2030, and mandates safety and environmental certification via the Engineering Development Board (EDB). Senior Vice Chairman PAAPAM, Sheryar Qadir, welcomed the framework, saying it restores fairness and gives local industry time to adapt.

PAAPAM firmly opposes APMDA’s demands to remove EDB oversight, reduce duties, and allow unregulated licensing. These would compromise safety standards, sabotage industrial investment, and repeat past misuse. With over 65 percent local value addition and UN-standard safety regulations now in place, Pakistan’s auto industry is ready to meet consumer needs competitively. “Pakistan’s industrial future depends on protecting the jobs, investments, and innovation that come from domestic manufacturing—not rewarding those who contribute nothing to our economy. The era of backdoor imports and policy manipulation must end,” concluded Usman Aslam Malik.

PAAPAM remains committed to working with the government and stakeholders to build a transparent, competitive, and resilient automotive sector.

Copyright Business Recorder, 2025