PAMA asks government to review used-car Gift Scheme over alleged misuse

The Pakistan Automotive Manufacturers Association (PAMA) has asked the government to review the Gift Scheme for used vehicles, alleging that it is being misused to import cars for commercial trading. The request was made in a letter dated October 28 to Haroon Akhtar Khan, the Prime Minister's Adviser on Industry and Production.

According to PAMA, imports under the scheme have grown sharply. It listed 7 vehicles in May 2026, 806 in June, 1,876 in July, 1,406 in August and 2,238 in September. Imports under the Transfer of Residence Scheme over the same period were almost nil, the association said.

In September 2026, the Gift Scheme accounted for about 98 percent of all used vehicle imports, PAMA said. It also raised concern over the shift of used vehicle imports from the Baggage Scheme to the Gift Scheme, which it said raises serious questions about the certification and approval of vehicles abroad.

PAMA Director General Razi ur Rehman said, in words carried by Express News, that the association supports steps giving real facilitation to Pakistanis living abroad, but that the unusual rise in imports shows the Gift Scheme is being used for something other than its original purpose. TechJuice reported that PAMA backs genuine facilitation for overseas Pakistanis under SRO 61(I)/2026, issued on January 15, 2026.

The association urged a comprehensive review of the certification, verification and monitoring system, so that the scheme serves its intended purpose and not commercial car trading. It asked the commerce ministry to introduce effective safeguards against misuse.

PAMA also expressed concern over recent tariff reforms under the National Tariff Policy, including major duty cuts, up to 60 percent depreciation relief on fully built used vehicles, and proposals to liberalise imports further. It asked the government to review policies that encourage excessive used vehicle imports because of their effect on local manufacturing.

The association said the auto industry has invested over Rs 1 trillion in local manufacturing capacity and parts production. It said 13 plants produce over 31 brands and more than 100 models, and local parts production in several segments has reached about 60 percent. PAMA warned that rising used imports threaten local investment, employment and import-substitution goals.