According to a report by the Engineering Development Board, as stated by Business Recorder, the share of used car imports in Pakistan has risen sharply from 7.5% in 2020-2023 to 20% in 2025. The trend is posing a serious challenge to local manufacturing, investment, and employment in the auto sector.
Regional Comparison and Policies
EDB informed the National Assembly Standing Committee on Industries and Production, held by Syed Hafeezudin, that countries like Thailand, India, and Indonesia import very few used cars, with a low percentage of 0.3-1.2 percent.
Moreover, they explained that the governments of these countries impose strict rules and implement taxes to protect local manufacturers.
Tractor Manufacturing Decline in 2024-2025
EDB reported to the National Committee that there are six tractor manufacturing units installed in Pakistan. The sector’s capacity stands at 111,200 units.
However, production has declined by approximately 19% between January 2024 and June 2025 due to various economic challenges.
After discussions, the committee recommended that EDB issue import authorization and a one-year manufacturing certificate to all operational tractor firms, including the one based in Sindh. It will support the continued production and investment in the tractor manufacturing sector.
Salary Crisis of USC ( Utility Stores Corporation)
The committee also reviewed issues related to the Utility Stores Corporation (USC). It urged the government to release the five months’ pending salaries of USC employees immediately.
Members expressed serious concern that the workers had been deprived of their rightful earnings for an extended period. They directed the Ministry of Industries and Production to take urgent steps to ensure payments.
Concern Over Financial Hardship
The member of the National Assembly, Romina Kurshid Alam, presented the sub-committee’s report to the National Assembly Standing Committee. The report highlighted that the salary delay has created financial issues for numerous families. The major committee addressed the government to handle this issue promptly.
What steps do you think Pakistan should take to protect its local automotive industry from the rising wave of used car imports?
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