Used car imports surge to 20%, threatening local manufacturing and jobs, warns EDB

Committee recommends issuing one-year import authorisations and manufacturing certificates to operational tractor firms in Sindh to boost local production

The share of used car imports in Pakistan has risen sharply from 7.5% in 2020-23 to 20% in 2025, raising concerns over the impact on local manufacturing, investment, and employment, the Engineering Development Board (EDB) told the National Assembly Standing Committee on Industries and Production on Tuesday.

According to media reports, EDB officials highlighted that regional countries such as Thailand, India, and Indonesia maintain minimal imports of old vehicles—ranging between 0.3 and 1.2% — through strict tariffs and administrative controls. 

The board noted that Pakistan currently has six tractor manufacturing units, five of which are operational, with a combined production capacity of 111,200 units. Production has fallen by 19%  from January 2024 to June 2025 due to rising imports and other factors.

The committee recommended that the EDB issue one-year import authorisations and manufacturing certificates to operational tractor firms, particularly those in Sindh, to support domestic production.

The report of the sub-committee, presented by Romina Khurshid Alam, was adopted by the Standing Committee, reflecting calls for urgent action on both industrial policy and employee welfare.

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