Key Takeaways
- PAMA urges government to halt implementation of EDB’s new used vehicle import framework.
- Changes could result in losses of over Rs50 billion to the domestic auto industry.
- Notification relaxes key safeguards, allowing increased commercial imports.
The Pakistan Automotive Manufacturers Association (PAMA) has urged the government to suspend the implementation of the Engineering Development Board’s (EDB) revised framework for commercial imports of used vehicles. In a letter to Adviser to the Prime Minister for Industries and Production, Haroon Akhtar Khan, PAMA Director General Razi ur Rahman expressed serious concerns over the potential negative impact on the domestic auto industry.
According to the letter, the new framework, which took effect on September 30, 2026, has significantly diluted the safeguards introduced under the previous notification. Key changes include the removal of minimum capital requirements and after-sales service requirements, as well as the transfer of inspection responsibilities to the Pakistan Standards and Quality Control Authority (PSQCA).
These modifications have already led to a surge in commercial imports of used vehicles. Ministry of Commerce data shows that imports increased from 48 units in May 2026 to 843 in June, 1,938 in July, 1,445 in August, and 2,276 in September 2026.
PAMA Director General Razi ur Rahman warned that these changes could result in losses of more than Rs50 billion to the domestic auto industry and its vendor network. He emphasized that the liberalization of used vehicle imports could accelerate the trend, further undermining the competitive position of local manufacturers.
Khan, the Adviser to the Prime Minister, acknowledged the need for a balanced regulatory framework that protects consumer interests and promotes competition. However, he stressed that the domestic automotive industry should not be placed at an unintended and disproportionate disadvantage.
The PAMA official highlighted that commercially imported used vehicles enjoy significant built-in cost advantages, including depreciation benefits of up to 36%. This creates a serious asymmetry, as local manufacturers are required to invest in plant, localisation, technology, employment, quality systems, taxation, and regulatory compliance, while imported vehicles can enter the market without comparable obligations.
The domestic automotive industry is currently operating in an environment of considerable uncertainty, including the forthcoming Auto Policy and National Tariff Policy (NTP) 2025–30, as well as proposals for significant tariff reductions intended to enhance competition and market efficiency.
At the same time, the PAMA is concerned that the removal of key regulatory safeguards could have significant consequences for investment, localisation, employment, government revenues, and the sustainability of Pakistan’s automotive manufacturing and vendor network.
On behalf of the Pakistan Automotive Manufacturers Association, we wish to convey our serious concern regarding the EDB Notification dated 30 September 2026, which supersedes the Notification of 30 September 2025 and introduces significant relaxations in the regulatory framework governing the commercial import of used vehicles.
Razi ur Rahman, PAMA Director General
