KARACHI: Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar has assured local auto assemblers that all imported vehicles will adhere to the same safety and quality regulations that apply to local manufacturers.

The issues of undervalued customs assessments will be taken up with the Federal Board of Revenue (FBR) and Customs Valuation, he informed the local vehicle assemblers during a meeting held in Islamabad on Thursday.

The government remains committed to ensuring a fair and competitive playing field. “Fixed valuations and import trade prices (ITPs) for used vehicles must be updated and reviewed annually. The Ministry of Industries will continue prioritising local manufacturing, job creation, and a progressive auto policy to encourage competitive pricing, which ultimately benefits Pakistani consumers,” Mr Akhtar stated.

He assured the delegation that the government is fully aware of the industry’s concerns regarding the import of used vehicles.

On the directives of Prime Minister Shehbaz Sharif, new legislation and regulatory frameworks will be introduced to address these issues comprehensively, he said, adding that only those used vehicles that meet safety and environmental standards will be allowed to enter Pakistan.

PM’s aide promises all vehicles will meet strict safety, quality regulations

He added that open competition would promote efficiency and lead the auto sector toward low-cost and competitive local manufacturing.

Secretary Industries Saif Anjum informed the meeting that, for commercial imports, three years of overseas residency and one year of registration under the owner’s name will remain mandatory.

He further said that the safety and quality standards of imported vehicles will be verified through pre-shipment inspections.

22,000 used vehicles

Industry representatives noted that nearly 22,000 used vehicles entered the country under the baggage scheme between July and November 2-025, capturing almost 25 per cent share of the market. If this trend continues, they warned, total imports could surpass 50,000 units this year, posing a serious threat to local investment, production, and employment.

“Because of outdated and significantly lower fixed customs valuations, used vehicles brought in under the baggage scheme pay far less in duties and taxes than locally manufactured cars. This imbalance is deeply concerning,” said Nadeem Malik, Chairman, Master Changan Motors.

Director Lucky Motor Corporation, Babar S. Khan said the delegation emphasised that these imports do not comply with UN safety regulations, which all local manufacturers must meet.

“No Government agency is currently checking whether these imported vehicles meet basic safety regulations. This puts both consumers and the public at risk,” he added.

Hyundai Nishat Motors COO Sohail Nawaz said the industry also highlighted the strain on local operations, which are running at only 35pc capacity.

“It is unfortunate that despite such low capacity utilisation, used vehicle imports under the baggage scheme continue at this scale,” he said.

Director NexGen Auto, Aqib Zulfiqar noted that local manufacturing creates jobs, supports value addition, drives technology transfer, and strengthens large-scale manufacturing — the backbone of our economy. In contrast, uncontrolled used car imports burden the economy while putting lives and long-term investments at risk.

Reflecting on the changing market dynamics, COO of Sazgar Haval, Mian Ali Hameed, said the original justification for allowing used imports no longer exists.

Consumers today have so many choices — 16 new players offering modern vehicles with full safety and advanced driver assistance features, zero-interest financing options, and immediate availability with no waiting periods.

Auto assemblers also emphasised that tax reforms and effective control over used car imports could help stabilise domestic production.

They cautioned that liberal policies on used car imports could undermine the hard-earned gains made by the local auto industry.

Published in Dawn, December 5th, 2025