The local auto industry has accused overseas Pakistanis of misusing the Gift Scheme after used car imports jumped nearly 32,000 percent between May and September.
Chairman Pakistan Association of Automotive Parts and Accessories Manufacturers (PAPAAM) Abdul Rehman alleged that the scheme was being used to facilitate commercial vehicle imports and questioned why the government was allowing this with local automakers already under great pressure.
Federal Board of Revenue (FBR) data shows that only seven used cars were imported under the Gift Scheme in May.
Imports under the baggage scheme remained below 50 vehicles each month during the period. Imports under the Transfer of Residence Scheme also remained limited.
What Happened After Gift Scheme
The Gift Scheme allows eligible overseas Pakistanis to send used vehicles to qualifying family members in Pakistan. The relevant notification is SRO 61(I)/2026, dated January 15, 2026.
The number rose to 806 in June and 1,876 in July, fell to 1,406 in August, and then climbed to 2,238 in September.
Compared to May, used car imports under the scheme have surged by 31,871 percent by September.
Importers Launch Blame Game
PAPAAM chairman called the increase alarming. He said around 60 percent of vehicle parts are manufactured locally and rising used car imports were hurting domestic manufacturers and their suppliers.
He said local automakers’ sales fell by more than 20 percent year-on-year in September, while overall volumes declined 21 percent month-on-month.
The chairman criticized the National Tariff Policy because he thinks its approach to completely built-up vehicle imports relied on incorrect data.
He said used car imports had briefly declined after the personal baggage scheme was abolished, but imports later shifted towards the Gift Scheme. The scheme accounted for 98 percent of all used vehicle imports in September 2026.
The auto industry is calling for stricter government oversight to prevent misuse of the scheme and protect local vehicle manufacturers and parts suppliers.
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