Former SAARC Chamber president says rising vehicle imports are increasing pressure on Pakistan’s foreign exchange reserves, hurting local auto parts manufacturers and causing revenue losses.

LAHORE: Former President of the SAARC Chamber of Commerce and Industry, Iftikhar Ali Malik, has called on the government to end used vehicle imports under the gift scheme, citing economic pressures and adverse effects on the domestic automotive industry.

In a statement issued on Sunday, Malik said used vehicle imports continued to increase despite stricter conditions and the abolition of the personal baggage scheme.

Citing official figures, he said around 2,000 vehicles were imported into Pakistan in October alone. Meanwhile, imports of new and used vehicles during the first quarter of the current fiscal year increased by 40% to reach $126 million.

Malik warned that rising vehicle imports were adding pressure to Pakistan’s external accounts, particularly when vehicles were being imported for commercial interests rather than genuine national needs.

He also raised concerns about informal payment channels and cash-based local sales, arguing that undocumented transactions were causing substantial revenue losses for the government.

Furthermore, he cautioned that increased imports could undermine the domestic auto parts industry, which supports hundreds of thousands of direct and indirect jobs.

Malik urged the government to review the new auto policy in the national interest and consult all relevant stakeholders, particularly the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), to develop sustainable policies for the automotive sector.