Islamabad, July 21, 2025 – Car imports into Pakistan witnessed a sharp decline of 40% in June 2025 on a Year-on-Year (YoY) basis, according to the latest data released by the Pakistan Bureau of Statistics (PBS).
This drop comes at a time when the government is in the process of lifting the ban on the commercial import of vehicles under a newly finalized tariff rationalization policy.
The PBS reported that car imports of Completely Built Units (CBUs) dropped to $20.34 million in June 2025, down from $33.74 million in June 2024. On a Month-on-Month (MoM) basis, car imports also fell significantly by 31.46%, compared to $29.68 million in May 2025.
Industry insiders say that the decline in car imports is largely due to the market’s cautious wait-and-see approach following the government’s announcement to allow the commercial import of used vehicles. Importers appear to be holding back until the new policy is officially notified, which is expected to take effect from September 2025.
According to government officials, the revised import policy aims to offer more options to the public, especially for purchasing affordable cars, while increasing competition for local automakers. “By lifting the ban on commercial car imports, we hope to encourage the availability of quality vehicles at competitive prices,” a senior official said.
Despite the monthly dip, overall car imports for fiscal year 2024-25 have shown a modest increase of 3.44%, reaching $278.17 million, compared to $269 million in the previous fiscal year. This indicates that consumer demand for imported vehicles remains strong, though recent market uncertainty has caused a temporary slowdown.
Analysts suggest that once the policy is implemented and the market adjusts, car imports are likely to rebound, especially if duties are rationalized in a way that makes imported vehicles more accessible to middle-income buyers. Until then, both importers and buyers are expected to remain cautious amid policy transitions and price expectations.