Used Vehicle Imports Surge as PAMA Raises Regulatory Concerns

The Pakistan Automotive Manufacturers Association (PAMA) has raised serious concerns over the Engineering Development Board’s (EDB) revised framework for the commercial import of used vehicles, warning that the relaxed rules could hurt the domestic auto industry.

In a letter to Prime Minister’s Adviser for Industries and Production Haroon Akhtar Khan, PAMA Director General Razi-ur-Rehman said the September 30, 2026 notification had diluted key safeguards introduced under the previous framework.

PAMA objected to the removal of minimum capital and after-sales service requirements for importers, as well as the absence of an effective vehicle recall mechanism. It also raised concerns over shifting pre- and post-shipment inspection responsibilities from the EDB to the Pakistan Standards and Quality Control Authority (PSQCA).

The association cited Ministry of Commerce data showing commercial used vehicle imports surged from 48 units in May to 2,276 in September 2026.

PAMA warned that continued growth in such imports could displace locally manufactured vehicles, affecting investment, employment, government revenues and the domestic vendor industry. It estimated that a return to FY2025-26 import volumes could cause losses of more than Rs50 billion to the local automotive industry and its vendor network.

The association urged the government to suspend the new notification and consult the automotive industry before implementing the revised framework. 

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