Pakistan’s local automobile industry has raised concerns over a sharp increase in used car imports under the Gift Scheme. Industry representatives allege that some overseas Pakistanis may be using the facility to support commercial vehicle imports.
According to Federal Board of Revenue (FBR) data, used car imports under the scheme increased significantly between May and September 2026. Only seven vehicles were imported through the scheme in May.
The number rose to 806 in June and reached 1,876 in July. Imports then declined to 1,406 in August before climbing to 2,238 in September.
The increase represents a reported rise of around 31,871 percent compared with May. The figures have prompted calls for stronger oversight of the vehicle import facility.
Gift Scheme Used Car Imports Rise Sharply
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, issued on January 15, 2026.
The scheme is intended to facilitate vehicle transfers to eligible family members. However, local industry representatives have questioned whether the facility is being used for purposes beyond its intended scope.
Imports under other vehicle schemes remained comparatively low during the same period. According to the report, monthly imports under the baggage scheme stayed below 50 vehicles.
Imports under the Transfer of Residence Scheme also remained limited. This has increased attention on the Gift Scheme’s growing share of used vehicle imports.
Local Auto Industry Raises Concerns
Abdul Rehman, chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAPAAM), described the increase as alarming. He alleged that the scheme was facilitating commercial vehicle imports.
Rehman also questioned the government’s approach while domestic automakers and parts manufacturers face pressure. He said around 60 percent of vehicle parts are manufactured locally.
According to him, rising used car imports could affect local manufacturers and their suppliers. The industry has therefore called for stronger government monitoring to prevent possible misuse.
Rehman also pointed to declining vehicle sales in September. He said local automakers’ sales fell by more than 20 percent year-on-year during the month.
Overall vehicle volumes also declined by 21 percent compared with August, according to his statement.
Industry Questions Import Policy
The PAPAAM chairman criticized the National Tariff Policy’s approach to completely built-up vehicle imports. He argued that its assessment relied on incorrect data.
He also said used car imports had declined temporarily after the personal baggage scheme was abolished. However, he claimed that imports later shifted towards the Gift Scheme.
The scheme reportedly accounted for 98 percent of all used vehicle imports in September 2026. This figure has added to industry concerns about the current import framework.
Calls for Stronger Government Oversight
The automobile industry is urging authorities to review the scheme and improve enforcement. Industry representatives say stricter checks could help ensure compliance with the applicable rules.
The debate also highlights the competing interests of vehicle consumers, overseas Pakistanis, local automakers, and parts suppliers. Any policy changes could affect vehicle availability and the domestic automotive sector.
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For now, the industry’s concerns focus on the sharp rise in imports and the scheme’s implementation. The government’s response will determine whether additional oversight measures are introduced.
