Pakistan CKD car imports surge 116% in 9MFY26 on demand recovery

car manufacturing

KARACHI, April 19 — Imports of completely knocked down (CKD) vehicles into Pakistan jumped 116% in the first nine months of fiscal year 2025-26, reflecting a sharp rebound in domestic automobile demand and higher local assembly activity, official data showed on Sunday.

According to the Pakistan Bureau of Statistics, CKD car imports rose to $1.47 billion during July–March FY26, compared with $680 million in the same period last year.

The increase comes amid a gradual recovery in Pakistan’s automobile sector following a prolonged economic slowdown, supply chain disruptions and import restrictions in previous years.

Analysts say the rise in CKD imports indicates stronger production activity by local assemblers, who rely on imported kits for domestic manufacturing. The trend suggests improving consumer demand and easing pressure on foreign exchange-related curbs imposed earlier to stabilise external accounts.

Sales data also point to recovery momentum. Local car sales climbed 43% year-on-year to around 144,000 units during the July–March period, according to estimates cited by Arif Habib Limited, a Karachi-based brokerage house. The improvement has been linked to stabilising inflation, better financing availability and gradual restoration of consumer confidence.

Imports of completely built units (CBUs), which are fully assembled vehicles, also rose during the period. CBU imports increased 31% to $263 million, compared with $200 million a year earlier, suggesting renewed demand in premium and specialised vehicle segments.

Market observers note that while CKD imports dominate overall volumes due to local assembly operations, rising CBU imports reflect continued appetite among higher-income buyers despite broader economic pressures.

Industry participants expect the momentum to continue in the coming months if macroeconomic stability persists and import regulations remain predictable.

However, analysts caution that the sector remains sensitive to currency fluctuations, taxation policies and import controls, which could affect future growth trajectories in Pakistan’s auto industry.