Used car imports under gift scheme persist despite tough restrictions, say vendors

Dawn reported that more than 2,000 used vehicles entered Pakistan through the overseas Pakistani gift scheme in October, despite government curbs. Auto parts vendors say the rising imports and a recently announced policy could undermine domestic manufacturing, which includes 1,200 component makers. Gift-scheme arrivals climbed from seven in May to 2,238 in September, according to a former PAAPAM chairman.

Imports of new and used completely built-up vehicles rose 40pc year on year to $126 million in 1QFY27, compared with $90m in 1QFY26, Pakistan Bureau of Statistics data showed. PAAPAM representatives argue that lower duties and taxes could encourage vehicle and parts imports, reduce local sourcing and weaken government receipts; they also expect the policy to put pressure on foreign currency availability. They say locally assembled cars contain varying proportions of locally made parts, while consumers could benefit from a 5-7pc price reduction.