KARACHI: Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar has assured local automobile assemblers that all imported vehicles will meet the same safety and quality standards that apply to local manufacturers.
The issues of undervalued customs valuations will be taken up before the Federal Board of Revenue (FBR) and Customs Valuation, local vehicle assemblers were informed 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 (ITP) for used vehicles should be updated and reviewed annually. The Ministry of Industry will continue to prioritize local manufacturing, job creation and a progressive automotive policy to encourage competitive pricing, which ultimately benefits Pakistani consumers,” Mr. Akhtar said.
He assured the delegation that the government is fully aware of the industry’s concerns regarding the importation of used vehicles.
Following the directives of Prime Minister Shehbaz Sharif, new laws and regulatory frameworks will be introduced to comprehensively address these issues, he said, adding that only those used vehicles that meet safety and environmental standards will be allowed to enter Pakistan.
The prime minister’s aide promises that all vehicles will meet strict safety and quality standards.
He added that open competition would promote efficiency and drive the automotive sector towards competitive and low-cost local manufacturing.
Industries Secretary Saif Anjum informed those present that for commercial imports, three years of residence abroad and one year of registration in the name of the owner will continue to be 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 2025, capturing almost 25 percent of the market. If this trend continues, they warned, total imports could exceed 50,000 units this year, posing a serious threat to local investment, production and employment.
“Due to outdated and significantly lower fixed customs values, used vehicles brought under the baggage system pay far less duties and taxes than locally manufactured cars. This imbalance is deeply worrying,” said Nadeem Malik, president of Master Changan Motors.
Lucky Motor Corporation Director Babar S. Khan said the delegation emphasized that these imports do not meet UN safety standards, which all local manufacturers must comply with.
“No government agency currently monitors whether these imported vehicles meet basic safety standards. This puts both consumers and the public at risk,” he added.
Hyundai Nishat Motors chief operating officer Sohail Nawaz said the industry also highlighted the strain on local operations, which are running at just 35 per cent capacity.
“It is regrettable that despite such low capacity utilization, imports of used vehicles under the baggage regime continue at this scale,” he said.
NexGen Auto Director Aqib Zulfiqar noted that local manufacturing creates jobs, supports value addition, drives technology transfer and strengthens large-scale manufacturing, the backbone of our economy. On the contrary, uncontrolled imports of used cars place a burden on the economy while putting lives and long-term investments at risk.
Reflecting on the changing market dynamics, Sazgar Haval COO Mian Ali Hameed said the original justification for allowing used imports no longer exists.
Today’s consumers have many options: 16 new players offering modern vehicles with complete safety and advanced driver assistance features, interest-free financing options and immediate availability with no waiting periods.
Auto assemblers also emphasized that tax reforms and effective control over used car imports could help stabilize domestic production.
They warned that liberal policies on used car imports could undermine the hard-won gains of the local auto industry.
Published in Amanecer, December 5, 2025.
