The Pakistan Automotive Manufacturers Association (PAMA) has urged the government to review the country’s car import rules after imports of used cars under the Gift Scheme rose sharply in recent months.
Imports under the scheme increased from seven vehicles in May 2026 to 2,238 in September, accounting for nearly 98% of all used-vehicle imports that month, according to the figures provided.
PAMA has called for measures to prevent the alleged misuse of the scheme, warning that rising imports could threaten domestic vehicle production, employment and investment.
In a letter to Prime Minister’s Adviser on Industries and Production Haroon Akhtar Khan, PAMA Director General Razi ur Rehman said the automotive sector had invested more than Rs1 trillion in local manufacturing.
The industry includes 13 plants and more than 31 brands, with locally manufactured components accounting for around 60% of production in several vehicle categories.
PAMA also expressed concern about lower import duties and depreciation of up to 60% on used completely built-up (CBU) vehicles, arguing that these measures put domestic manufacturers at a competitive disadvantage.
The association has urged the government to review the scheme’s certification, verification and monitoring procedures to ensure it serves its intended purpose rather than being used for commercial trading.
The government has yet to announce any measures in response to the concerns outlined in the letter.
