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Automakers Fear IMF Backing Used Car Imports for Pakistan is a Big Mistake

The upcoming National Tariff Policy 2025–30 has raised serious concerns among local auto manufacturers.

The IMF-backed policy proposes an increase in used car imports, including the commercial import of used vehicles. The industry has warned that these steps will lead to an influx of cheaper used vehicles, undermine localization efforts, weaken employment in manufacturing, and increase pressure on forex reserves and the current account.

The plan also includes a five-year reduction in import duties on completely built-up (CBU) vehicles, along with the removal of Additional Customs Duty (ACD), Regulatory Duty (RD), and the fifth schedule. Tariff slabs will be reduced from five to four, and the maximum slab rate will be capped at 15 percent.

They said abrupt tariff shifts jeopardize an industry that sustains 2.5 million jobs, contributes 4 percent of national tax revenue, and has seen over $5 billion in investment.

Former chairman of Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) Aamir Allawala criticised the growing share of used car imports and warned that these often involve unregulated transactions through hawala and cash.

He noted that fixed duties on small used cars remain low, while the government plans to raise sales tax on small locally assembled vehicles to 18 percent. He called for volume support and long-term policy continuity to protect the domestic vendor base.

Steel producers also warned that tariff reductions without regionally competitive input costs could lead to large-scale dumping of steel. He called for increased development allocations and a roadmap that incentivizes steel production through domestic iron ore.

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  • Let them cry, itni expensive krdi hn k new car laina 90% population k impossible hai.

  • Oh wow really

    Let’s see as per the article
    “The industry has warned that these steps will lead to an influx of cheaper used vehicles, undermine localization efforts, weaken employment in manufacturing, and increase pressure on forex reserves and the current account.”

    You want to sell expensive cars that people cannot afford but complaining about cheaper cars from other nations lol .
    If an industry cannot provide better product at a cheaper price then that industry should not exist . You should lose.
    There is no localisation since cars are notproduced in pakistan. We don’t even produce bikes. All imported.

    Good riddance

  • If an industry that cannot provide better product at cheaper price then that industry must go down. That’s how market works

    Crying about cheaper alternatives is not going to work . Not even govt officials use local cars lol

  • if anything affects their profits it becomes haraam and is a mistake 😂🤣

  • Oh wow really

    Let’s see as per the article
    “The industry has warned that these steps will lead to an influx of cheaper used vehicles, undermine localization efforts, weaken employment in manufacturing, and increase pressure on forex reserves and the current account.”

    You want to sell expensive cars that people cannot afford but complaining about cheaper cars from other nations lol .
    If an industry cannot provide better product at a cheaper price then that industry should not exist . You should lose.

  • So what about the poor Pakistani public which would have to keep buying cars on 4x prices than neighbourhood, India, if used imported vehicles are not imported in required quantity?
    You’re just advocating the automobile mafia in Pakistan bcz they’ve paid you heavy cash for writing this article.
    You talk abt automobile industry job losses. Why didn’t you talk abt the depredations, plundering, looting and defrauding done by automobile mafia on public where they bagged billions of dollars and earned manifold…we didn’t see you crying then. Why now?
    Shameful disgusting people you are. Not pro Pakistani just cash wanting bitches

  • Automakers in Pakistan are a mafia
    I always belived that they are doing good but just realised that they don’t honour their own contracys


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