The Pakistan Automotive Manufacturers Association (PAMA) has expressed serious concern over a notification issued by the Engineering Development Board (EDB) on the commercial import of used vehicles. On Wednesday, in a letter to Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan, PAMA Director-General Raziur Rehman said the notification, dated September 30, 2026, significantly relaxes the regulatory framework and dilutes the safeguards introduced under the earlier notification of September 30, 2025.
He said the new notification limits regulation to used vehicles, whereas the 2025 version covered both new and used completely built units (CBUs). It also removes the minimum capital requirement for importing companies and the condition of adequate after-sales service, without putting in place an effective product recall mechanism.
The notification also shifts pre- and post-shipment inspection responsibilities from the EDB to the Pakistan Standards and Quality Control Authority (PSQCA), and facilitates commercial imports under SRO 2443(I)/2025, allowing PSQCA-registered companies to inspect imported used vehicles. According to the letter, the changes are already reflected in import volumes.
Ministry of Commerce data shows that commercial imports of used vehicles rose from 48 units in May 2026 to 843 in June, 1,938 in July, 1,445 in August and 2,276 in September. "The removal of key regulatory safeguards is likely to accelerate this trend further," the letter said.
PAMA said the liberalisation comes at a time of considerable uncertainty for the domestic industry, with the forthcoming Auto Policy and National Tariff Policy (NTP) 2025-30 pending, along with proposals for significant tariff reductions aimed at enhancing competition and market efficiency. The DG said commercially imported used vehicles continue to enjoy built-in cost advantages, including depreciation benefits of up to 36 percent.
"This creates a serious asymmetry: local manufacturers are required to invest in plant, localisation, technology, employment, quality systems, taxation and regulatory compliance, while commercially imported used vehicles can enter the market without comparable obligations," stated the letter. He emphasised that the issue goes beyond competitive pressure.
If left unchecked, the displacement of locally manufactured vehicles could have serious consequences for investment, localisation, employment, government revenues and the sustainability of the country's automotive manufacturing and vendor base. PAMA estimates that a return to FY2025-26 import volumes could cause losses exceeding Rs50 billion to the domestic automotive industry and its vendor network.
The DG added that continued growth in used vehicle imports could undermine the government's wider objective of building a competitive, technology-driven and sustainable domestic automotive manufacturing base. "We therefore respectfully request the government to review the EDB Notification and suspend its implementation pending meaningful consultation with the automotive industry and other relevant stakeholders," the letter concluded.
"A balanced regulatory framework is essential, one that protects consumer interests and promotes competition, while ensuring that domestic manufacturers and their substantial investments are not placed at an unintended and disproportionate disadvantage."