Used Car Imports in Pakistan Jump to 20%, Hurting Local Auto Industry

Why does your local car mechanic have fewer jobs lately? Or why that shiny new factory down the road sits half-empty? It's tied to a big shift in Pakistan's roads. The Engineering Development Board reports used car imports have climbed from 7.5% of the market in 2020-2023 to 20% this year. That's a flood of second-hand vehicles from abroad, and it's squeezing the life out of homegrown makers.

Why the Surge? A Policy Door Left Wide Open

Back in June, the government activated SRO 1895(I)/2025. It greenlit commercial imports of used cars up to five years old, think sedans, SUVs, even pickups under certain codes. No more limits just for overseas Pakistanis bringing gifts or baggage. Now, big players like Indus Motor Company, Toyota's local arm, are jumping in. They've asked the EDB for the paperwork to start shipping them in bulk.

Why?

Cheaper options for buyers tired of sky-high new car prices. But here's the rub: each import skips past local assembly lines.

Pakistan's rules are loose compared to its neighbors. India caps imports of right-hand drive cars under three years old, slaps on 125% duties, and demands strict tests. Thailand does the same with high tariffs and local content rules. Their factories hum with jobs and fresh tech. Here? We're letting in 40,000 to 45,000 used rides in just one year, grabbing nearly a third of sales. Local output drops, and that means fewer gigs for welders, painters, and engineers.

Ripple Effects: Jobs, Factories, and Even Farms

It's not just cars. The EDB flagged how this hits investment, why build here if imports undercut you? One expert put it plain: each imported unit kills demand for hundreds of local parts, touching 1.83 million jobs. And the pain spreads. Tractor production, key for farmers, fell 19% from January 2024 to June 2025. Six plants could churn out 111,200 units a year, but economic woes have them idling. Sales are down 35% in the first 10 months of fiscal 2025, leaving fields plowed by hand or old rigs.

Then there's the human side. At the same meeting, the talk turned to Utility Stores Corporation workers. Five months of salaries sit unpaid for 7,710 folks, sparking protests in Islamabad. The chain's winding down, but families can't wait. Unions call it "economic murder," with some scraping for basics like funerals. The committee pushed for quick cash from the government, but delays drag on.

A Wake-Up Call for Pakistan's Makers

This isn't doom talk. It's a nudge. Tighten those import gates like India did boost local rules, cut duties on parts, and fund R&D. Farmers need tractors that roll off fresh lines, not dusty imports. Workers need paychecks, not pink slips. And drivers? Affordable rides without gutting the economy.

The EDB's report isn't buried in files. It's out there, urging action. Will the government listen? That could decide if our roads fill with Pak-made wheels or just echoes of what was. Keep an eye, your next spin might depend on it.