Pakistan Sees Sharp Rise in Used Car Imports Under Gift Scheme

Used car imports into Pakistan under the 'Gift Scheme' have seen an alarming surge, jumping from just seven units in May to 2,238 in September. This dramatic increase has raised significant concerns within the domestic automobile industry, with the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAPAAM) chairman, Abdul Rehman, alleging widespread misuse of the scheme. Data from the Federal Board of Revenue (FBR) shows a fluctuating but overall upward trend, reaching 1,876 units in July before its September peak. This shift towards the Gift Scheme, especially after the abolition of the personal baggage scheme, is seen as undermining efforts to protect local manufacturers, who reported a year-on-year sales decline of over 20 percent in September, further impacting parts suppliers and the economy.