ISLAMABAD: After months of serious pressure by local automobile manufacturers, the government has decided to regulate used car imports as the local auto industry sounded alarms over 120,000 imported vehicles within a year, which had pushed the local industry to the verge of collapse.
The decision was taken here on Thursday during a high-level meeting chaired by Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, with the delegation of the auto industry.
The participants of the meeting were informed that the Prime Minister of Pakistan has directed all the relevant quarters, including the Ministry of Industries and Production, to devise a new framework on the subject of used car imports to protect local manufacturing units.
According to the officials of the Engineering Development Board (EDB), the share of used car imports in Pakistan has jumped from 7.5 percent in 2020-23 to 20 percent in 2025, which is posing a serious threat to local manufacturing, investment, and employment.
The officials of the EDB said that, in contrast, the imports of used cars in regional countries such as Thailand, India, and Indonesia are negligible, 0.3-1.2 percent, as the governments of these countries have imposed strict tariffs and administrative controls.
Haroon Akhtar Khan discussed the matters with the local auto industry and said the government is committed to safeguarding the interests of the end consumers as well as the industry. He said the government will ensure safety and environmental compliance for all imported used vehicles.
Besides others, the meeting was attended by Secretary Industries Saif Anjum and Chief Executive Officer (CEO) of EDB, Hammad Mansoor.
During the meeting, the participants discussed the challenges facing the auto sector, the import of used vehicles, and matters related to local manufacturing. Representatives of the Pakistan Auto Manufacturers Association emphasized that tax reforms and effective control over used car imports could help stabilize domestic production.
They cautioned that liberal policies on used car imports could undermine the hard-earned gains made by the local auto industry. Haroon Akhtar Khan stated that the auto industry plays a crucial role in Pakistan’s large-scale manufacturing sector.
He assured the delegation that the government is fully aware of the industry’s concerns regarding the import of used vehicles. He further said that, on the directives of the Prime Minister, new legislation and regulatory frameworks will be introduced to address these issues comprehensively. “Only those used vehicles that meet safety and environmental standards will be allowed to enter Pakistan,” Haroon Akhtar Khan emphasized.
He added that open competition would promote efficiency and lead the auto sector toward low-cost and competitive local manufacturing. Secretary Industries Saif Anjum informed the meeting that for commercial imports, three years of overseas residency and one-year registration under the owner’s name will remain mandatory requirements.
He further said that the safety and quality standards of imported vehicles will be verified through pre-shipment inspections. Haroon Akhtar Khan concluded that the new regulations will ensure transparency and merit-based competition in the auto market.
Copyright Business Recorder, 2025
