Used car imports under Pakistan’s Gift Scheme surged from just seven units in May to 2,238 in September, raising concerns over the impact on the domestic automobile industry.
According to Federal Board of Revenue (FBR) data, imports under the scheme reached 806 units in June and 1,876 in July before falling to 1,406 in August and rising sharply in September.
Meanwhile, imports under the Baggage Scheme remained below 50 units monthly, while those under the Transfer of Residence Scheme were negligible.
Abdul Rehman, chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAPAAM), termed the trend alarming, alleging widespread misuse of the Gift Scheme and urging the government to address the issue.
He said local automakers recorded a year-on-year sales decline of more than 20 per cent in September, while monthly sales fell 21 per cent, further squeezing manufacturers and parts suppliers.
Rehman added that the shift towards the Gift Scheme following the abolition of the personal baggage scheme had undermined efforts to protect the domestic industry. He claimed the scheme accounted for 98 per cent of used-vehicle imports in September 2026.
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