KARACHI: Indus Motor Company (IMC) has praised the government’s role in stabilising Pakistan’s auto sector, crediting Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar, Federal Secretary of the Ministry of Industries and Production Saif Anjum and CEO of the Engineering Development Board Hamad Ali Mansoor for their coordinated efforts.
“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 of IMC Ali Asghar Jamali.
He added that the policy decision marks a significant step towards strengthening Pakistan’s local automotive manufacturing sector. By discouraging the influx of used vehicles, the initiative is expected to boost demand for locally assembled cars, support industrial growth, generate employment and reduce idle production capacity across the industry.
The company highlighted that around a 50 per cent shift is expected from the Baggage Scheme to the completely knocked down (CKD) market, while the remaining volume may move to other import schemes. Overall, the used car market is projected to shift by 21,050 units following the policy change.
In financial year 2025, Pakistan imported 35,806 used cars under the Personal Baggage category. Since the scheme was abolished in January 2026, such imports are no longer expected. Meanwhile, 4,634 units were imported under the Gift Scheme and 1,685 units under the Transfer of Residence category, taking total used car imports to 42,125 units during the year.
Jamali noted that used car imports remain minimal in regional markets such as India, Thailand and Vietnam due to strict tariff and administrative measures. The share of used cars stands at zero per cent in India, 1.2 per cent in Thailand and 0.3 per cent in Vietnam, compared with around 20 per cent in Pakistan.
He said the government’s efforts would help transform Pakistan’s automotive sector into a driver of sustainable economic growth and improve its appeal as an investment destination for global original equipment manufacturers.
