Due to record imports of vehicles in Pakistan, there are serious concerns about the adverse impact on the country’s automotive industry.
In July 2025, more than 4,000 used vehicles were cleared, including around 600 expensive cars with a total value exceeding PKR 5 billion.
According to sources, these used vehicles were cleared under personal baggage and related schemes.
A total of 3,996 vehicles were cleared under the personal baggage scheme, 331 under the gift scheme, and 96 under the residence transfer scheme.
Sources also revealed that most importers of luxury vehicles belong to underdeveloped areas of Khyber Pakhtunkhwa, from where billions of rupees worth of cars were imported.
Former Chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers, Mashhood Khan, described the import of over 4,000 used vehicles in one month as catastrophic for the local industry. He warned that if 4,000 vehicles are imported monthly, this would exceed 40,000 annually a level Pakistan’s import bill cannot sustain.
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Mashhood Khan stated that continuous imports of used vehicles will cause long-term damage to Pakistan’s economy by increasing foreign exchange outflow, eliminating local jobs, and reducing tax revenue from domestic manufacturing. The auto sector in Pakistan directly provides employment to 330,000 people.
