Imports of used vehicles under the Gift Scheme climbed sharply from seven in May 2026 to 2,238 in September, accounting for nearly 98% of all used-vehicle imports that month.
The Pakistan Automotive Manufacturers Association (PAMA) has called on the government to review the scheme and introduce measures to prevent its alleged misuse, warning that the rising influx of used vehicles threatens domestic 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 comprises 13 plants and over 31 brands, with localisation reaching around 60% in several vehicle categories.
PAMA also raised concerns over lower import duties and depreciation of up to 60% on used completely built-up (CBU) vehicles, arguing that these measures weaken the competitiveness of domestic manufacturers.
The association urged the government to review the scheme’s certification, verification and monitoring mechanisms to ensure it is used for its intended purpose rather than commercial trading.
