Pakistan’s auto industry could face losses of more than Rs. 50 billion following changes to commercial used vehicle import rules, the Pakistan Automotive Manufacturers Association (PAMA) has warned, urging the government to suspend the new regulations.
In a letter to the prime minister’s adviser on industries and production, PAMA raised concerns over an Engineering Development Board (EDB) notification issued on September 30, 2026. The association said the revised rules have removed several safeguards previously applied to commercial imports.
Under the new framework, regulation applies only to used vehicles, while requirements for minimum capital and adequate after-sales service have also been removed. Inspection responsibilities have been shifted from the EDB to the Pakistan Standards and Quality Control Authority (PSQCA).
PAMA highlighted a sharp rise in commercial used vehicle imports, which increased from 48 units in May to 2,276 units in September 2026. The association warned that further growth could hurt local investment, employment, localization, government revenue and the wider automotive supply chain.
According to PAMA, commercially imported used vehicles can benefit from depreciation advantages of up to 36%, while local manufacturers face costs related to plant investment, technology, employment, taxation and regulatory compliance.
The association has asked the government to review and suspend the September 30 notification until consultations are held with automakers and other stakeholders.
