Pakistan drafts new rules for used car imports amid local industry's warnings

The Pakistan government is preparing a new regulatory framework for used car imports after industry leaders warned that lenient policies could threaten domestic automobile production, officials said Thursday.

Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan met with representatives of the auto sector to review challenges facing manufacturers, including rising used vehicle imports and weakening local output. Secretary Industries Saif Anjum and Engineering Development Board CEO Hammad Mansoor also attended the meeting.

Industry officials told the government that tax reforms and stronger controls on used car imports were needed to stabilize production. They argued that an unchecked influx of imported vehicles could reverse gains made by the local industry in recent years.

Khan said the auto sector plays a critical role in Pakistan’s large-scale manufacturing and assured industry leaders that the government is aware of their concerns. He said Prime Minister Shehbaz Sharif has directed ministries to prepare legislation and new regulations to address the issue.

“Only those used vehicles that meet safety and environmental standards will be allowed to enter Pakistan,” Khan said. He added that greater competition could ultimately help improve efficiency and push the sector toward more competitive local production.

Anjum said commercial imports would continue to require at least three years of overseas residency and one year of registration under the importer’s name. He said all incoming vehicles would undergo pre-shipment inspections to verify safety and quality standards.

Khan said the forthcoming rules aim to ensure merit-based competition and greater transparency in the auto market.