Pakistan Car Imports Surge 36% in July-August Despite Restrictions

News Desk
KARACHI: Pakistan witnessed a notable 36 per cent surge in the import of new and motor cars, touching $81.4 million during the July-August period of
fiscal year 2026 compared to $59 million in the corresponding months of the previous year, according to official data released on Monday.
The upward trajectory has been primarily driven by new market entrants accelerating the introduction of advanced electrified models ahead of scheduled local assembly operations.
Despite the federal government tightening regulations in January by abolishing the traditional baggage scheme and enforcing mandatory pre-shipment inspections for vehicles brought in under gift and transfer-of-residence schemes, used car influxes remain a persistent challenge for domestic manufacturers.
While industry giants like Indus Motor Company (IMC) reported a marginal decline in overall used car units dropping to roughly 38,000 in FY26 from 42,000 previously, auto parts vendors argue that loopholes in the gift scheme continue to facilitate a steady volume of foreign vehicles.
This surging vehicular influx presents a complex dilemma for Pakistan’s fragile economic landscape, pitting the demands for technological modernization and consumer choice against the protection of domestic assembly plants and foreign exchange reserves.
Local vendors warn that unchecked imports could severely undermine localized vendor industries and manufacturing investments if regulatory oversight is not strictly enforced at entry ports.
Industry stakeholders anticipate upcoming deliberations between the Engineering Development Board and automotive representatives to evaluate the efficacy of current pre-shipment inspection protocols. Meanwhile, policymakers are expected to review trade data closely to determine whether further tightening of gift scheme regulations is necessary to safeguard the national manufacturing ecosystem.