KARACHI: The Pakistan Automotive Manufacturers Association (PAMA) has urged the government to review and suspend the latest Engineering Development Board notification governing commercial imports of used vehicles, warning that the revised rules have become too lenient and could hurt local automakers.
PAMA Director-General Razi-ur-Rehman raised the issue in a letter sent on Wednesday to Haroon Akhtar Khan, Adviser to the Prime Minister on Industries and Production.
The letter focuses on the EDB notification issued on September 30, 2026, which replaced the rules introduced exactly a year earlier for companies commercially importing vehicles.
PAMA Says New Rules Weaken Earlier Safeguards
According to PAMA, the previous notification contained safeguards intended to protect consumers and local manufacturers, while the latest framework removes or weakens several of those requirements.
The association highlighted a number of changes.
The 2025 rules applied to both new and used completely built units, or CBUs, while the new notification is limited to used vehicles.
It also removes the minimum capital requirement for importing companies and no longer requires importers to demonstrate adequate after-sales service arrangements.
PAMA further said the revised rules do not provide for an effective product recall mechanism.
Responsibility for pre-shipment and post-shipment inspections has also shifted from the EDB to the Pakistan Standards and Quality Control Authority.
Commercial Used Car Imports Rise Sharply
PAMA said Ministry of Commerce data already show a sharp increase in commercial imports of used vehicles over recent months.
Commercial imports stood at 48 units in May 2026 before rising to 843 in June, 1,938 in July, 1,445 in August and 2,276 in September.
The September figure was around 47 times higher than the level recorded in May.
PAMA argued that removing existing safeguards could push imports even higher.
Association Flags Price Advantage for Imported Cars
The association also raised concerns over what it described as a built-in cost advantage for imported used vehicles, which can benefit from depreciation of up to 36 percent.
PAMA said this creates an uneven playing field because local manufacturers are required to invest in production facilities, localisation, technology, employment, quality systems, taxes and regulatory compliance.
Commercially imported used vehicles, it argued, can enter the market without being subject to similar obligations.
Industry Policy Uncertainty Adds to Concerns
PAMA said the timing of the notification had added to uncertainty in the auto industry.
The Auto Policy and the National Tariff Policy 2025-30 are still pending, while proposals for significant tariff reductions are also under consideration as part of efforts to improve competition and market efficiency.
The association warned that a continued rise in used car imports could displace locally produced vehicles and affect investment, localisation, employment, government revenues and the vendor network supporting domestic manufacturers.
PAMA Warns of More Than Rs50 Billion in Losses
The PAMA director-general said local automakers and their suppliers could face losses of more than Rs50 billion if used vehicle imports return to the levels seen in the previous financial year.
The letter also warned that higher imports could undermine the government’s goal of developing a competitive and technology-driven domestic manufacturing base.
PAMA Seeks Suspension Pending Consultation
PAMA has asked the government to review the EDB notification and suspend its implementation until the industry and other stakeholders are consulted.
The association said Pakistan needed a balanced framework that protects consumers and promotes competition without placing domestic manufacturers at an unfair disadvantage.
PAMA maintained that local assemblers and manufacturers invest heavily in plants and technology while creating jobs in Pakistan, whereas commercially imported used cars do not generate comparable domestic investment or employment.
It argued that if imported vehicles and locally manufactured cars are required to compete without comparable obligations, companies may have less incentive to establish or expand manufacturing facilities in Pakistan.
PAMA has previously opposed regulatory changes that make vehicle imports easier.
As of the latest available information, the EDB had not responded to the association’s request to suspend the notification.