Local Auto Industry Warns of Overseas Pakistanis Exploiting Car Gift S

Local Auto Industry Warns of Overseas Pakistanis Exploiting Car Gift Scheme

Domestic automakers state that used car imports surged nearly 32,000 percent through the Gift Scheme between May and September.

NationPulse Desk

Oct 21, 2026 · 7:01 PM 2 min read

Key takeaways

PAPAAM chairman Abdul Rehman accused overseas Pakistanis of misusing the car Gift Scheme.

Federal Board of Revenue records show only seven used cars were imported under the scheme in May.

Imports via the Gift Scheme reached 2,238 vehicles by September, marking a 31,871 percent increase from May.

Domestic automakers reported a year-on-year sales decline of over 20 percent in September.

The Gift Scheme accounted for 98 percent of all used vehicle imports in September 2026.

Domestic vehicle manufacturers in Pakistan have claimed that expatriates are exploiting the Gift Scheme, pointing to a nearly 32,000 percent increase in secondhand car imports between May and September. Abdul Rehman, chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers, stated that the policy is being used to bring in commercial vehicles while local producers struggle.

Figures from the Federal Board of Revenue indicate that May saw only seven secondhand cars brought in through the Gift Scheme. Numbers for the baggage scheme stayed under 50 vehicles monthly during this timeframe, while Transfer of Residence Scheme imports stayed low as well.

What Happened After Gift Scheme

Eligible expatriates use the Gift Scheme to ship secondhand vehicles to eligible relatives in Pakistan, governed by notification SRO 61(I)/2026 issued on January 15, 2026.

Imports grew to 806 units in June and 1,876 units in July, dropped to 1,406 units in August, and reached 2,238 units in September.

September figures represent a 31,871 percent surge in secondhand car imports under this policy compared to May.

Importers Launch Blame Game

The PAPAAM chairman described the growth as alarming, noting that domestic producers and their suppliers take a hit because roughly 60 percent of vehicle components are produced inside the country.

He pointed out that domestic automakers experienced a year-on-year sales drop of over 20 percent in September, alongside a 21 percent month-on-month decline in total volumes.

The chairman blamed the National Tariff Policy, arguing its stance on completely built-up vehicle imports stems from faulty statistics.

He mentioned that secondhand car imports dropped temporarily when the personal baggage policy ended, but traders later redirected shipments to the Gift Scheme, which represented 98 percent of total secondhand vehicle imports by September 2026.

The domestic auto sector is demanding tighter official supervision to stop abuse of the policy and safeguard domestic producers and component makers.

Questions and answers

What is the Gift Scheme?

The Gift Scheme allows eligible overseas Pakistanis to send used vehicles to qualifying family members in Pakistan under notification SRO 61(I)/2026, dated January 15, 2026.