Govt preparing stricter regulatory framework for used car imports to protect local industry

• Tax reforms critical to stabilising domestic production: Pama.
  
• Association warns import policies eroding local industry's gains.
• Govt to ensure mandatory pre-shipment inspections for safety.

ISLAMABAD: In a bid to protect local industry and manufacturing, the government is working on new legislation and a stricter regulatory framework to control used car imports, The News reported on Friday.

The plan was discussed on Thursday at a detailed meeting between Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan and a delegation of the auto industry to review key challenges facing the sector. Secretary Industries Saif Anjum and Engineering Development Board CEO Hammad Mansoor also attended.

Industry representatives, including members of the Pakistan Auto Manufacturers Association, told the meeting that tax reforms and tighter controls on used car imports were critical to stabilising domestic production.

They warned that liberal import policies were eroding the local industry’s hard-won gains, weakening vendor networks and discouraging fresh investment.

Khan said the auto industry plays a vital role in Pakistan’s large-scale manufacturing sector and assured the delegation that their concerns were fully understood at the highest level.

He said that on the prime minister’s directives, new laws and regulations were being introduced to deal comprehensively with issues related to used vehicle imports.

"Only those used vehicles that meet safety and environmental standards will be allowed to enter Pakistan," Khan emphasised.

He said increased competition would help improve efficiency and steer the sector toward low-cost and competitive local manufacturing, while ensuring consumer protection through better regulatory oversight.

Secretary Industries Anjum said key safeguards on commercial imports would remain in place. Three years of overseas residency and at least one year of registration of the vehicle in the owner’s name would continue to be mandatory for import eligibility.

The government would further tighten enforcement through mandatory pre-shipment inspections to verify the safety and quality standards of all imported vehicles before they enter Pakistan.

Officials said the new framework aims to prevent misuse of import schemes, enforce environmental standards and balance consumer access with the sustainability of local manufacturing.