In the 2026 fiscal year, Pakistan experienced a decline in imports of used cars, dropping to approximately 38,000 vehicles from 42,000 the previous year. This decrease was largely due to the cancellation of the personal baggage vehicle import scheme and the implementation of mandatory pre-shipment inspections for vehicles imported as gifts or during residency changes.
The government’s actions may lead to a sustained reduction in used vehicle imports, potentially benefiting the local automotive industry, which is currently operating at below 50% of its production capacity. Notably, used cars still make up 19% of total sales, with buyers now having access to 31 brands and over 100 locally assembled vehicle models.
Despite the downturn in used vehicle imports, overall vehicle imports are on the rise, particularly for new cars. According to the Pakistan Bureau of Statistics, imports of completely built-up vehicles surged by 36%, totaling $377.7 million in the 2026 fiscal year. The market is also seeing newcomers focusing on electric vehicles as they evaluate consumer response for potential local assembly.
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