The Pakistan Automotive Manufacturers Association (PAMA) has warned that new rules facilitating commercial imports of used vehicles could cause losses of more than Rs. 50 billion to local automakers and their vendor network.
In a letter dated October 6 to the Prime Minister’s Adviser on Industries and Production, PAMA urged the government to suspend the revised commercial import rules notified by the Engineering Development Board (EDB) on September 30, 2026.
The association said the new framework has removed several safeguards introduced through an earlier notification in September 2025.
Under the revised rules, regulatory requirements now apply only to used vehicles, whereas the previous framework covered both new and used completely built units. PAMA also pointed out that the new rules have removed the minimum capital requirement for importing companies and the requirement to maintain adequate after-sales service.
The association further raised concerns about the absence of an effective product recall mechanism.
Another major change is the transfer of pre-shipment and post-shipment inspection responsibilities from the EDB to the Pakistan Standards and Quality Control Authority (PSQCA). The new framework also allows commercial imports under SRO 2443(I)/2025 through PSQCA-registered companies responsible for inspecting imported used vehicles.
PAMA said Ministry of Commerce data shows a sharp increase in commercial used vehicle imports in recent months.
Imports rose from 48 vehicles in May 2026 to 843 in June, 1,938 in July, 1,445 in August and 2,276 in September.
The association warned that further relaxation of regulatory requirements could accelerate this growth and put additional pressure on local manufacturers.
PAMA said the changes have also come at a sensitive time for the domestic automotive industry, which is awaiting the forthcoming Auto Policy and facing uncertainty over the National Tariff Policy 2025-30. Proposed tariff reductions are also aimed at increasing competition and improving market efficiency.
According to PAMA, commercially imported used vehicles can have a depreciation advantage of up to 36 percent compared with locally produced vehicles.
The association argued that local manufacturers, meanwhile, carry substantial costs linked to plant investment, localization, technology, employment, quality control systems, taxation and regulatory compliance.
PAMA estimated that a return to fiscal year 2025-26 commercial used vehicle import volumes could result in losses of more than Rs. 50 billion for the domestic automotive industry and its vendor network.
It warned that a continued rise in used vehicle imports could affect investment, localization, employment, government revenue and the wider automotive supply chain.
PAMA has asked the government to review the September 30 notification and suspend its implementation until consultations are held with automakers and other relevant stakeholders.
The association said the regulatory framework should promote competition and protect consumers while ensuring that local manufacturers are not placed at a disproportionate disadvantage.
