PAMA seeks review of Gift Scheme to prevent its misuse

Pakistan Automotive Manufacturers Association (PAMA) has asked the Ministry of Commerce to review the Gift Scheme and strengthen safeguards, Business Recorder reported on October 28. PAMA Director General Razi ur Rehman said used-vehicle imports through the scheme climbed from 7 units in May 2026 to 2,238 in September, when it represented about 98 percent of used-vehicle imports. Imports under the Transfer of Residence Scheme remained negligible over the same period, according to the letter.

PAMA argues that the surge risks weakening domestic manufacturers, suppliers, jobs and planned investment, and says the scheme appears to be used beyond its intended purpose. It also objects to lower import duties and depreciation of up to 60 percent on used CBU vehicles under recent tariff reforms, saying these measures reduce the competitive space for local production. The association called for a review of certification and monitoring, while noting that domestic plants and supply chains have built manufacturing capacity and achieved about 60 percent localization in many vehicle categories.