Demand for revision of permission for import of used vehicles under gift scheme

Pakistan Automotive Manufacturers Association (PAMA) demanded the Ministry of Commerce to immediately review the gift scheme and introduce effective safeguards to prevent its misuse.

PAMA Director General Razi-ur-Rehman has written to Prime Minister's Adviser on Industry and Production Haroon Akhtar Khan asking the government to review policies encouraging excessive imports of used vehicles, as it is affecting local manufacturing. He stressed that all measures related to imports should be aligned with Pakistan's industrial development goals.

According to the letter, there has been a phenomenal increase in imports of used vehicles under the gift scheme. In May 2026, only 7 vehicles were imported under the scheme, which increased to 806 in June, 1,876 in July, 1,406 in August and 2,238 in September. On the contrary, imports under Transfer of Residence Scheme remained negligible during the same period. In September 2026, the gift scheme accounted for around 98% of the total used vehicle imports.

Razi-ur-Rahman said that PAMA supports measures to provide genuine relief to overseas Pakistanis, but the extraordinary increase in imports shows that the gift scheme is being misused for its intended purpose.

He said that Pakistan's automobile industry has invested more than one thousand billion rupees to establish local manufacturing capabilities and increase local production of parts. At present, more than 31 brands and more than 100 models are operating in the country through 13 manufacturing plants, while the proportion of local component manufacturing has reached nearly 60 percent in several vehicle sectors.