PAAPAM urges govt to retain one-year used-car transfer ban in Auto Policy 2026-31

The Pakistan Association of Automotive Parts & Accessories Manufacturers, known as PAAPAM, has asked the government to keep a one-year transfer ban on used cars brought in under overseas facilitation schemes while the Auto Policy 2026-31 is being finalised. Writing to the prime minister, finance minister and industries minister, chairman Usman Aslam Malik argued that dropping the rule could weaken local auto-parts makers and slow progress on documenting the economy. The group estimated that about 1.8 million jobs tied to domestic parts manufacturing could be hit if used-car imports stay loosely regulated.

PAAPAM said each used vehicle imported displaces roughly Rs1.5 million of local components, while last year's used-car imports came to about 50,000 units, close to 30% of the domestic market. The association put the black-money network linked to these imports at Rs200 billion, warning that overseas remittances could shift from formal banks to hundi and hawala channels. It also flagged a duty premium on used cars set to fall from 40% to zero by FY30, plus a customs duty cut to 30% on new completely built-up vehicles up to 850cc, which it said make used imports attractive to traders.

PAAPAM has asked the prime minister and his economic team to keep the one-year non-transfer rule in the final policy. It argues such schemes should serve their intended users, not traders selling through informal dealer channels.