Pakistan’s auto sector is showing strong signs of recovery as completely knocked down (CKD) imports reach their highest level since March 2022, indicating a rebound in local vehicle assembly activity.
According to Topline Securities, the rise in CKD imports reflects improving demand for cars across the country and a gradual recovery in production by local assemblers.
CKD kits are imported sets of vehicle parts used by manufacturers in Pakistan to assemble vehicles domestically. Higher imports typically signal increased factory output and stronger sales momentum in the auto market.
The industry had faced significant pressure during 2023 and early 2024 due to import restrictions, currency depreciation, high interest rates, and weaker consumer purchasing power, which forced several automakers to scale down production or temporarily shut plants.
Many companies also struggled with opening letters of credit and securing imported components during the downturn, further slowing manufacturing activity.
However, conditions have gradually improved over the past year as macroeconomic stability has returned and import restrictions have eased, allowing production cycles to normalize.
The recent surge in CKD imports is also contributing to a higher national import bill, raising concerns that sustained growth in vehicle-related imports could widen pressure on the current account if export performance does not keep pace.
