PAMA Urges Govt To Tighten Oversight Of Used-Vehicle Gift Import Scheme
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✧ GENERATE BRIEFING
The Pakistan Automotive Manufacturers Association (PAMA) has formally requested urgent federal intervention to review and restrict used-vehicle imports under the Gift Scheme, warning that the facility is being exploited for commercial trading. In a letter addressed to Haroon Akhtar Khan, Adviser to the Prime Minister on Industries and Production, PAMA Director General Razi ur Rehman called for stricter verification procedures, overseas certification audits, and tighter regulatory oversight under SRO 61(I)/2026.Key operational, import volume, and policy concerns highlighted by PAMA include:Explosive Used-Vehicle Import Growth: Imports under the Gift Scheme surged dramatically from just 7 units in May 2026 to 806 in June, 1,876 in July, 1,406 in August, and 2,238 in September.Dominance Over Import Channels: By September 2026, the Gift Scheme accounted for approximately 98% of all used-vehicle imports entering Pakistan, while the Transfer of Residence (TR) Scheme shrank to negligible levels.
The Pakistan Automotive Manufacturers Association (PAMA) has urged the federal government to conduct an immediate review of the Gift Scheme governing used-vehicle imports, citing a sharp surge in shipments and expressing concern that the personal facility is being repurposed for commercial vehicle trading.
In a formal letter sent to Haroon Akhtar Khan, Adviser to the Prime Minister on Industries and Production, PAMA Director General Razi ur Rehman requested the immediate introduction of regulatory safeguards, alongside a review of overseas certification and monitoring protocols under SRO 61(I)/2026, issued on January 15, 2026.
Explosive Growth in Used-Vehicle Shipments
Data presented by PAMA reveals an exponential rise in used-vehicle arrivals under the Gift Scheme over the course of mid-2026:
| Import Month (2026) | Gift Scheme Import Volume (Units) | Trajectory & Channel Share |
| May 2026 | 7 Units | Baseline monthly volume |
| June 2026 | 806 Units | Initial surge following policy shifts |
| July 2026 | 1,876 Units | Strong momentum across mid-tier CBU models |
| August 2026 | 1,406 Units | Sustained high import volume |
| September 2026 | 2,238 Units | ~98% of total used-vehicle imports |
By September, the Gift Scheme represented nearly 98% of all used vehicles clearing Pakistani ports, while imports through the Transfer of Residence (TR) and Personal Baggage schemes remained negligible. PAMA argued that this structural shift strongly indicates commercial entities are utilizing the passports and credentials of overseas Pakistanis to bypass normal commercial import restrictions.
Domestic Manufacturing Exposure and Investment at Risk
PAMA stressed that the influx of imported used cars directly threatens the viability of Pakistan’s domestic auto industry, which has invested over Rs1 trillion in assembly facilities, local vendor networks, and technology transfers.
According to the association, the domestic automotive ecosystem encompasses:
- 13 active vehicle assembly and manufacturing plants
- 31 distinct commercial brands offering over 100 models
- Localization rates reaching up to 60% across popular passenger car and commercial vehicle categories
- Thousands of skilled direct jobs and a network of hundreds of tier-1 and tier-2 auto parts vendors
Tariff Disparities and Depreciation Allowances
PAMA strongly criticized current provisions under the National Tariff Policy, pointing out that imported used CBU vehicles benefit from depreciation allowances of up to 60% on import duties.
The industry association argued that while local assemblers face high regulatory compliance burdens, localized content requirements, corporate taxation, and fluctuating currency exchange rates, imported used cars enjoy unfair price advantages due to concessionary duty regimes intended strictly for genuine personal gifts.
PAMA has called on the Ministry of Industries and Production, the Federal Board of Revenue (FBR), and the Ministry of Commerce to tighten verification mechanisms at foreign missions and introduce end-user ownership track-and-trace requirements to ensure the Gift Scheme serves its intended non-commercial purpose.
