Pakistan’s auto industry has accused overseas Pakistanis of misusing the Gift Scheme after used car imports under the facility jumped nearly 32,000 percent between May and September.
Abdul Rehman, chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAPAAM), alleged that the scheme was being used for commercial imports, hurting local automakers and parts suppliers.
Federal Board of Revenue (FBR) data shows that imports under the scheme rose from just seven cars in May to 2,238 in September. Imports reached 806 in June, climbed to 1,876 in July, and fell to 1,406 in August before rising again.
The Gift Scheme allows eligible overseas Pakistanis to send used vehicles to qualifying family members in Pakistan, subject to import rules, duties, and taxes.
Rehman said around 60 percent of vehicle parts are made locally and warned that rising used car imports were adding pressure to an industry already facing weak demand. He said automakers’ sales fell by more than 20 percent year-on-year in September, while monthly sales volumes dropped 21 percent.
He also criticised the National Tariff Policy, saying it could put local parts manufacturers at a disadvantage. Rehman said imports had shifted towards the Gift Scheme after the personal baggage scheme was abolished.
According to him, the Gift Scheme accounted for 98 percent of used vehicle imports in September 2026. The industry has called for tighter checks to prevent alleged misuse. These allegations have not been independently verified.
