Indus Motor Company has appreciated the sincere efforts of Haroon Akhtar, Special Assistant to the Prime Minister on Industries and Production, Saif Anjum, Federal Secretary of the Ministry of Industries and Production, and Hamad Ali Mansoor, CEO of the Engineering Development Board, for the stability of local auto industry.
Read More: https://theboardroompk.com/strait-of-hormuz-reopens-amid-uncertainty-in-us-iran-peace-talks/
“I really appreciate their concerted efforts for the growth of local auto industry, especially abolishing the baggage scheme for used car imports,” said Chief Executive IMC Ali Asghar Jamali.
He added that this landmark policy decision marks a significant step towards strengthening Pakistan’s local automotive manufacturing sector as by discouraging the influx of used vehicles the initiative is expected to enhance demand for locally assembled cars, support industrial growth, generate employment and effectively reduce idle production capacity within the country’s automotive industry.
It is worth adding here that a 50% shift is expected from Baggage Scheme to CKD market while others may shift to remaining schemes, thus the Used Car market will shift by 21,050 units.
In the financial year 2025 total 35,806 units of used cars were imported under Personal Baggage category and since this category has been abolished in January 2026 the imports under this category are not expected to happen now.
Similarly, under Gift Scheme total 4634 units were imported and under Transfer of Residence category total 1685 units were imported in the FY 2025, leading to total imported used cars units of 42,125 in the said year.
“Used car imports are negligible in India, Thailand, and Vietnam due to various tariff and administrative measures as the market share of used cars in these countries are 0%, 1.2%, and 0.3%, respectively, while the market share of used cars in Pakistan is 20%.
The CEO IMC said that the sincere efforts of the government will help Pakistan’s automotive sector to become a driver of sustainable economic growth and position itself as a potential investment destination for original equipment manufacturers.