Pakistan’s auto parts manufacturers have warned that relaxed rules for importing used vehicles could threaten hundreds of thousands of jobs and weaken local production.
According to reports on October 12, 2026, the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) said the government’s latest decision could put 300,000 direct jobs and 1.5 million indirect jobs at risk.
The Engineering Development Board issued a notification on September 30, allowing businesses to import used vehicles without the previous licensing requirement. PAAPAM has raised concerns about the removal of safeguards related to after-sales services and spare parts availability.
The association warned that increased imports could reduce demand for locally manufactured vehicles and auto parts. This may affect factories, suppliers and workers who depend on Pakistan’s automotive industry.
PAAPAM has urged the federal government to review the decision and protect local manufacturers and employment. However, supporters of used vehicle imports argue that greater competition could give consumers more choices and improve market conditions.
