Pakistan's used car imports decline — Dawn
In Pakistan, imports of used cars in the 2026 fiscal year declined to about 38,000 vehicles, compared with 42,000 a year earlier. The reduction in supplies was influenced by the cancellation in January of the personal baggage vehicle import scheme and the introduction of mandatory pre-shipment inspection for vehicles imported as gifts or upon a change of residence, Dawn reports.
Share of imported cars
According to Indus Motor Company, these government measures may continue to reduce the inflow of used vehicles and help increase capacity utilization in the local automotive industry. The sector is currently operating at less than 50% of its installed production capacity.
At the same time, the Pakistan Automotive Manufacturers Association reported that imported used cars still account for 19% of total sales. Indus Motor Company noted that buyers have access to 31 brands and more than 100 locally assembled vehicle models in the main market segments.
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Growth in new vehicle imports
Mian Shoaib Ahmed, a representative of the All Pakistan Motor Dealers and Importers Association, said that no vehicle has arrived under the personal baggage scheme since its cancellation, while imports of used cars as gifts are insignificant.
Total vehicle imports are meanwhile growing due to supplies of new cars. According to the Pakistan Bureau of Statistics, imports of completely built-up vehicles rose by 36% to $377.7 million in the 2026 fiscal year, compared with $278 million in the previous year.
In July, such imports declined to $57 million from $70 million in June, but exceeded $33 million in July 2025. New market entrants are, in particular, importing electric vehicles to assess consumer response before a possible transition to local assembly.
