The Pakistan Automotive Manufacturers Association (PAMA) has urged the government to review the Gift Scheme for used vehicles, alleging that the facility is being misused to import cars for commercial trading.
In a letter dated October 28 to Prime Minister’s Advisor on Industries and Production Haroon Akhtar Khan, PAMA said imports under the scheme surged from just seven vehicles in May 2026 to 2,238 in September. The association added that the Gift Scheme accounted for around 98% of all used vehicle imports during September, while imports under the Transfer of Residence Scheme remained negligible.
According to PAMA, imports under the Gift Scheme increased to 806 vehicles in June, 1,876 in July, 1,406 in August, and 2,238 in September. The association said it supports genuine facilitation for overseas Pakistanis under SRO 61(I)/2026, issued on January 15, 2026, but believes the sharp increase warrants a review of the scheme’s implementation.
PAMA also raised concerns about the shift in used vehicle imports from the Baggage Scheme to the Gift Scheme, questioning the certification and approval process for vehicles imported from abroad. It called for stronger monitoring and safeguards to prevent the scheme from being used for commercial purposes.
The association further warned that rising used car imports and recent tariff reductions under the National Tariff Policy could put pressure on local manufacturers. PAMA said the industry has invested more than Rs. 1 trillion in domestic manufacturing, with over 31 brands and more than 100 models produced at 13 plants. It urged the government to introduce measures to protect local investment, employment, and manufacturing.
