Business Desk 
Nov 10, 2025
While the import of used cars in Pakistan seems to have expanded options for auto enthusiasts, it has emerged that imported used cars are causing annual losses of Rs 48-60 billion to Pakistan's auto-parts sector.
According to Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) Senior Vice Chairman Shehryar Qadir, each imported vehicle displaces around Rs1.5 million worth of locally manufactured components, which in turn affects economic growth, tax revenue, and job creation.
Local vendors, essential to the automotive ecosystem, are facing declining sales because of a purportedly heavy influx of used cars in Pakistan.
The import of used cars is also affecting countless small and medium enterprises, with idle capacity and financial difficulties leading to closures. It is also posing a threat to employment and advancements in technology and skill development.
Qadir stressed that the automotive sector supports hundreds of thousands of skilled and semi-skilled workers. Each imported used vehicle not only represents a lost sale for local assemblers but also a missed opportunity for job creation, he remarked.
According to the data revealed by PAAPAM, auto-parts manufacturers employ approximately 300,000 people directly and more than two million indirectly.
Despite investments in technology and local production enabling globally competitive capabilities, the inflow of unrestricted used-car imports is expected to take a toll on these achievements.
