The controversy over Pakistan’s commercial used car imports has taken a dramatic turn, with the Federal Investigation Agency (FIA) raiding the Engineering Development Board (EDB) over a disputed notification, seeking official records and taking phones and laptops of officials. The officer who signed the notification has also been removed, while questions continue to surround the role of the current EDB CEO and an alleged nexus with used car importers.
Sources told RBN that the FIA team raided the EDB office and demanded records linked to the September 30, 2026 notification, which changed the rules governing commercial imports of used vehicles.
The raid was initiated after the current EDB CEO wrote to the FIA seeking action and identified officials whose data and records should be obtained.
Sources alleged that commercial used vehicle import rules were changed without the required approval. They also raised questions over an alleged connection between used car importers and the current EDB CEO.
The September 30 notification reopened commercial imports of used vehicles and changed several eligibility and inspection requirements.
Around 15,000 used vehicles are currently at Karachi port and could be released under the new notification. Sources warned that weaker post-shipment inspection could create safety risks if vehicles are cleared without proper physical checks.
Under the new rules, proprietorships and partnership firms with valid National Tax Number and sales tax registration can import used vehicles commercially. Previously, commercial importers were required to be companies incorporated under the Companies Act, 2017.
The earlier requirement for the minimum capital requirement to be decided by the Federal Cabinet has also been removed.
The inspection mechanism has also been revised. Importers now need a pre-shipment certificate from an internationally accredited inspection body registered with the Pakistan Standards and Quality Control Authority (PSQCA).
After arrival in Pakistan, documents are to be verified by the local representative of the same inspection company that carried out the pre-shipment inspection.
The earlier September 30, 2025 notification required third-party post-shipment inspection at an EDB-designated facility at the importer’s cost.
The Economic Coordination Committee (ECC) had previously deferred the matter and ordered further work on the EDB’s inspection system. Sources said the latest notification was issued despite that process.
Federal Minister Musadik Malik believes the notification could not have been issued in the manner it was, sources said. The EDB is also required to submit a report to the Prime Minister on the matter.
Sources said an adviser to the Ministry of Industries had met officials several months ago and subsequently maintained that the rules should be aligned with United Nations rules.
The controversy has also focused on the officer who issued the notification. Sources said the officer is considered close to the current EDB CEO.
The officer who signed the disputed notification has been removed with immediate effect. Sources said he was still present at the EDB office today despite the controversy.
The Ministry of Industries and Production had reportedly been informed when the officer was posted on deputation, while the Establishment Division directly issued the deputation notification.
Sources have also alleged a nexus between used car importers and the current EDB CEO. These allegations have not been independently established.
RBN has reached out to the FIA for its response. The story will be updated once a response is received.
