1.8m jobs at risk over auto policy

The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has urged Prime Minister Shehbaz Sharif and senior cabinet members to keep safeguards against used-car import misuse while the Auto Policy 2026-31 is being finalised. In a letter to the prime minister and other ministers, chairman Usman Aslam Malik argued that dropping a proposed one-year non-transfer condition on cars brought in through overseas facilitation schemes would seriously damage the domestic auto sector. The association says around 1.8 million jobs tied to local auto-parts production are at risk if imports remain unregulated.

Last year, roughly 50,000 used cars were imported, according to PAAPAM, which puts their share at nearly 30% of the local market. The group adds that every used vehicle brought in displaces components valued at almost Rs1.5 million, squeezing domestic output. PAAPAM estimates black-money activity around these imports at roughly Rs200 billion, and warns remittances could move into hundi and hawala networks.

PAAPAM also flagged tariff changes, with used-car duties set to fall from a 40% premium over new cars to zero by FY30. Together with the 30% customs duty on new completely built-up cars up to 850cc and depreciation relief of up to 36%, used imports are becoming more appealing to traders. Malik warned that dropping the one-year restriction would be especially damaging for parts makers, who provide as much as 65% of component value for domestic assemblers.