Government Moves to Balance Used Car Imports with Support for Local Manufacturers

A high-level meeting was held at the Ministry of Commerce, co-chaired by Federal Minister for Commerce Jam Kamal Khan and Special Assistant to the Prime Minister on Industries Haroon Akhtar Khan. The meeting focused on improving policies for the automotive sector, controlling the import of used cars, and supporting local manufacturers as well as overseas Pakistanis.

According to an official statement released on Thursday, representatives from the Pakistan Automotive Manufacturers Association (PAMA) and the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) attended the meeting. Senior officials from the Ministry of Commerce, the Ministry of Industries and Production, and the Federal Board of Revenue (FBR) also took part.

Federal Minister Jam Kamal Khan said the main goal was to review the state of the automobile and auto parts industry after allowing commercial imports of used cars. The meeting also discussed import schemes for overseas Pakistanis to make sure they are used properly and transparently.

He said the government plans to introduce pre-shipment and post-shipment inspection systems through the Engineering Development Board (EDB). These quality checks will help stop the misuse of commercial used car imports.

“By enforcing strict inspections and clear import rules, we want to promote transparency and support the growth of Pakistan’s industry,” the minister said.

He added that the government’s top priority is to help local manufacturers and strengthen domestic production so that Pakistan’s auto industry becomes more competitive and self-reliant.

The minister also mentioned that new proposals are being prepared to amend the existing used car import schemes. The aim is to make these schemes more transparent and to stop commercial misuse.

He explained that an additional 40% regulatory duty has already been placed on commercial used car imports. This duty will gradually decrease each year to create a fair balance between local and imported vehicles.

The meeting also discussed harmonising the baggage, gift, and transfer of residence schemes. Currently, the baggage scheme requires a person to have stayed abroad for at least six months. Industry representatives suggested that this rule should be the same for all three schemes to make things easier and more consistent.

SAPM Haroon Akhtar Khan appreciated the industry’s cooperation and called for better coordination between the commerce and industries divisions. He said such discussions are important for building a sustainable and competitive automotive sector.

He also urged trade associations to send their proposals soon for the upcoming Automobile Policy, which the Ministry of Industries plans to finalise by November.

Representatives from PAMA and PAAPAM shared suggestions about increasing local production, supporting local vendors, adjusting tariffs, and offering incentives for research and development.

The commerce minister asked all industry stakeholders to submit detailed recommendations for a long-term automotive policy that supports national industrial goals.

In closing, Jam Kamal Khan reaffirmed the government’s commitment to transparency, facilitation, and partnership with the private sector.
“Our goal is not only to stop misuse in imports but also to strengthen local manufacturing and make Pakistan’s auto industry globally competitive,” he said.

The meeting ended with an agreement to continue regular consultations between the government and industry to ensure steady growth and progress in the automotive sector.