Government Promises Reforms on Used Car Imports Amid Alarm

The Ministry of Industries has assured local auto assemblers that undervalued customs assessments and unchecked imports of used vehicles will be addressed through new legislation and regulatory frameworks. Industry leaders warned that rising imports under the baggage scheme threaten jobs, investment, and consumer safety, urging reforms to protect domestic manufacturing.

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Officials have promised to tackle undervalued customs assessments and the surge in used car imports, assuring local manufacturers that reforms are underway. Adviser Mr. Akhtar told industry representatives that import trade prices for used vehicles must be revised annually, adding: “Our priority is local manufacturing, job creation, and competitive pricing for consumers.”

He confirmed that Prime Minister Shehbaz Sharif has directed the introduction of new legislation to ensure only vehicles meeting safety and environmental standards are allowed entry. Secretary Industries Saif Anjum added that residency and registration requirements for commercial imports will remain mandatory, while pre-shipment inspections will verify compliance with safety rules.

Industry leaders highlighted that nearly 22,000 used cars entered Pakistan between July and November 2025, capturing a quarter of the market. “Outdated customs valuations mean these vehicles pay far less duty than locally built cars. This imbalance is deeply concerning,” said Nadeem Malik, Chairman of Master Changan Motors.

Executives from Lucky Motor Corporation, Hyundai Nishat, NexGen Auto, and Sazgar Haval warned that unchecked imports undermine United Nations safety standards, strain plants running at 35% capacity, and risk jobs and investment. They urged tax reforms and stricter controls to stabilize domestic production and safeguard long-term industry growth.