Car manufacturers have urged the government to promptly reassess the Gift Scheme for used vehicles, claiming it is being exploited to bring thousands of used cars into Pakistan.

In a letter addressed to Advisor to the Prime Minister on Industries and Production Haroon Akhtar Khan, the Pakistan Automotive Manufacturers Association (PAMA) reported that imports under the scheme rose from just 7 units in May 2026 to 2,238 units in September.

PAMA noted that the Gift Scheme accounted for roughly 98 percent of all used vehicle imports in September, while the Transfer of Residence Scheme contributed a negligible amount.

From 7 Cars to Over 2,000 a Month

The October 28 letter detailed monthly figures, showing Gift Scheme imports climbing to 806 units in June, 1,876 in July, 1,406 in August, and 2,238 in September.

The association said it backs genuine facilitation for overseas Pakistanis under SRO 61(I)/2026 of January 15, 2026, but the sharp increase suggests the scheme is being used beyond its intended purpose.

PAMA also highlighted the near-complete shift of used car imports from the Baggage Scheme to the Gift Scheme within a few months.

It raised concerns about how these vehicles are certified and approved abroad, urging a full review of certification and monitoring to prevent commercial trading under the scheme.

The rise in used-car imports has been building for months; earlier this month data showed a 4,600 percent increase, and importers have voiced worries about abuse of the Gift Scheme.

Local Industry Under Pressure

PAMA stated the auto sector has invested over a trillion rupees in domestic manufacturing, producing more than 31 brands and over 100 models at 13 plants, with about 60 percent localisation in many categories.

The association also criticised recent tariff cuts under the National Tariff Policy, including up to 60 percent depreciation on imported used cars, saying these measures discourage local manufacturing, jobs, and investment.

PAMA called for safeguards against misuse and requested a meeting to present its recommendations in person.