ISLAMABAD: Auto parts makers have welcomed the reduction in imports of used cars, calling it a key step towards promoting industrialisation in the country.

In a statement, the Pakistan Association of Automotive Parts and Accessories Manu­fa­cturers (Paapam) lauded the government’s policy measures, which have significantly reduced the import of used vehicles while supporting local manufacturing and contributing positively to large-scale manufacturing (LSM) growth.

According to recent import data for April this year, only 148 used vehicles were imported under various schemes, including 19 under the gift scheme, 120 under the baggage scheme, and nine under the transfer of residence scheme.

This marks a substantial decline from the 3,500 to 4,000 used vehicles imported monthly during last year.

The association noted that the encouraging reduction in used vehicle imports had been ach­ieved through the government’s timely efforts to plug loopholes in schemes that were previously being misused for commercial imports under facilities meant for overseas Pakistanis.

It added that for every vehicle locally produced in Pakistan, local parts worth an average of Rs1.5 million are used, resulting in a revenue loss of over Rs60 billion annually for local parts manufacturers due to the import of used vehicles.

“The corrective measures taken by the government have shifted consumer demand towards locally manufactured vehicles, leading to increased production by domestic assemblers and auto parts manufacturers,” it added.

The association continued that “this positive momentum is now contributing directly to Pakistan’s industrial recovery and supporting LSM growth, which remains one of the most imp­ortant indicators of economic performance”.

Published in Dawn, May 18th, 2026