Govt moves to tighten rules on used car imports, vows protection for local auto industry

The government on Thursday signaled a shift toward stricter regulations on used vehicle imports, with Prime Minister Shehbaz Sharif directing the formulation of a new framework aimed at safeguarding safety standards and supporting domestic manufacturing.

The development came during a meeting chaired by Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, who held detailed discussions with representatives of the auto sector. Secretary Industries Saif Anjum and Engineering Development Board (EDB) CEO Hammad Mansoor also attended.

Surge in used car imports sparks concern in auto industry

Industry representatives briefed the government on challenges facing the sector, warning that unregulated inflows of used vehicles could undermine the progress of local manufacturing.

The Pakistan Auto Manufacturers Association stressed that tax reforms and tighter controls on used car imports were essential to stabilizing production.

Haroon Akhtar Khan acknowledged the concerns, stating that the auto sector remained a key pillar of large-scale manufacturing and required a predictable and competitive environment.

He said the government was preparing new legislation and regulatory measures in line with the prime minister’s instructions.

Import of used cars: Continued policy of encouraging may destabilise automotive sector

He added that only used vehicles meeting prescribed safety and environmental standards would be allowed into Pakistan, noting that increased competition must complement, not compromise, local manufacturing.

According to Secretary Industries Saif Anjum, existing conditions for commercial imports, including three years of overseas residency and one-year registration in the importer’s name, will remain intact.

He said all imported vehicles will undergo pre-shipment inspections to verify safety and quality standards.

Haroon Akhtar Khan said the upcoming framework would ensure transparency, promote merit-based competition, and create a more disciplined import regime for used cars.