Auto manufacturers urge govt to suspend EDB’s used vehicle import 'relaxation'

According to Business Recorder, the Pakistan Automotive Manufacturers Association (PAMA) has asked the government to pause the Engineering Development Board's (EDB) revised rules for commercial used-car imports, warning that local producers could face an unfair disadvantage. In a letter to Haroon Akhtar Khan, Adviser to the Prime Minister on Industries and Production, PAMA Director General Razi ur Rahman sought a rethink of the notification dated September 30 and broader consultation.

The association says the new notification weakens key safeguards, which could speed up used-car imports and cost the industry and its vendors over Rs50 billion. PAMA identifies four weakened areas: coverage now applies only to used vehicles, minimum capital and after-sales service rules are dropped without an effective recall mechanism, inspections shift from EDB to PSQCA, and PSQCA-registered firms may inspect used imports under SRO 2443(I)/2025. Monthly figures from the Ministry of Commerce put commercial used-car imports at 48 in May 2026, 843 in June, 1,938 in July, 1,445 in August and 2,276 in September.

PAMA said the timing is awkward as the sector already faces unsettled conditions before the Auto Policy, National Tariff Policy and proposed tariff reductions. It also highlighted a depreciation edge of as much as 36 per cent for imported used vehicles, while local makers carry investment, localisation, employment and tax costs. The group warned that displacement of local vehicles could hurt investment, government revenue and vendors.