Pakistan Car Import Bill Rises 36% to $81.4 Million in First Two Months of FY27

Pakistan’s car import bill climbed sharply during the opening two months of FY2026-27, with imports of new and used motor cars reaching approximately $81.4 million in July and August 2026.

That represents an increase of around 36% year-on-year, compared with roughly $59 million during the corresponding period of the previous fiscal year.

The figures underline the growing visibility of imported vehicles in Pakistan, particularly as more electric vehicles, plug-in hybrids and Chinese brands enter the market.

But the headline needs some context.

A 36% increase in import value does not mean Pakistan imported 36% more cars.

The figure measures the dollar value of vehicles entering the country. A relatively small number of expensive SUVs, EVs, or premium imported vehicles can increase the total import bill significantly without vehicle volumes rising at the same rate.

Pakistan Car Imports: The Key Figures

The Pakistan Bureau of Statistics publishes foreign-trade data on a provisional basis, meaning later revisions are possible.

Why Are Car Imports Rising?

There is no single reason behind the increase.

Pakistan’s motorcar import bill currently reflects two broad categories:

• new, completely built-up vehicles

• used imported vehicles

Both have been active during the opening months of FY27.

The new-car side has become particularly visible because several manufacturers and distributors have introduced or announced imported electric, hybrid, plug-in hybrid and range-extended vehicles.

Many new brands initially enter Pakistan with CBU imports before deciding whether sales volumes justify local assembly.

At the same time, used vehicles continue entering the country through legally permitted import schemes.

New EVs and Hybrids Are Adding to CBU Imports

Pakistan’s new-energy vehicle market has expanded rapidly.

A growing number of Chinese manufacturers are testing the market with imported EVs, PHEVs and REEVs before committing to local production.

Industry representatives have estimated that Chinese manufacturers are bringing significant numbers of new-energy vehicles into Pakistan each month.

However, those estimates should not be confused with official PBS unit data.

The $81.4 million headline covers the total value of new and used motor-car imports, rather than providing a dedicated count of electric or hybrid vehicles.

This distinction is important.

An imported premium EV can contribute far more to the dollar import bill than a small used hatchback, so import value alone does not show exactly how the market is divided.

Buyers interested in the changing tax structure around electrified cars can also read AutoWheels’ existing guide to EV and hybrid taxes in Pakistan, where applicable.

Used-Car Imports Continue Despite Rule Changes

Pakistan changed its used-vehicle import framework earlier in 2026.

The Ministry of Commerce issued S.R.O. 61(I)/2026 in January, removing the personal baggage provision from the relevant vehicle-import rules.

Vehicles may still enter under permitted schemes such as:

• Gift Scheme

• Transfer of Residence

The revised rules also introduced a one-year non-transfer condition for vehicles imported under the Gift and Transfer of Residence schemes.

So while the Personal Baggage route has been removed, Pakistan has not completely stopped used-car imports.

Gift Scheme Dominates Reported Used Imports

Industry data cited in local business reporting suggests that the Gift Scheme accounted for the overwhelming majority of reported used-car arrivals during July and August.

According to figures attributed to former Pakistan Association of Automotive Parts and Accessories Manufacturers chairman Aamir Allawala:

• 1,938 used vehicles reportedly arrived in July

• 1,876 of those were reportedly imported under the Gift Scheme

• 1,445 used vehicles reportedly arrived in August

• 1,406 were reportedly imported through the Gift Scheme

These are industry-supplied unit figures rather than a standalone PBS motor-vehicle volume series and should therefore be treated separately from the official $81.4 million import-value headline.

CBU Imports and CKD Kits Are Different

It is also important not to confuse imported finished vehicles with the components used for local assembly.

A CBU vehicle arrives in Pakistan as a complete car.

A CKD vehicle is assembled locally using imported kits together with locally sourced components where applicable.

Trade reporting indicates that imports of vehicle kits for local assembly also increased during July and August 2026.

PakWheels’ review of PBS data puts CKD kit imports at roughly $355 million during the first two months of FY27, compared with approximately $305 million during the same period a year earlier.

That is substantially higher than the $81.4 million spent on finished new and used motor cars.

So Pakistan was seeing increased activity in both:

• imported finished vehicles

• locally assembled vehicles dependent on imported kits

Local Car Sales Were Also Growing

The increase in car imports should not automatically be interpreted as a collapse in demand for locally assembled cars.

Pakistan Automotive Manufacturers Association data shows that locally reported passenger-car sales also grew strongly during the same period.

Around 30,933 passenger cars were sold in July and August 2026, compared with approximately 17,192 units during the corresponding period a year earlier.

That works out to growth of almost 80%.

Passenger-car production also increased over the period.

This means Pakistan’s automotive market was becoming more active on both fronts.

Imported-car spending increased, but local passenger-car sales were also expanding.

That makes the situation more complicated than a simple imported-versus-local argument.

Why Local Parts Manufacturers Are Worried

Pakistan’s local auto-parts industry views rising CBU imports differently.

Local vendors argue that every vehicle imported as a complete unit represents potential demand that could otherwise support local assembly and component manufacturing.

Industry representatives have also pointed to localisation levels in some locally assembled vehicles as evidence that domestic manufacturing supports a wider supply chain.

Their concerns include:

• reduced demand for locally manufactured parts

• pressure on vendor investment

• employment risks

• lower incentives for localisation

• higher foreign-exchange outflows

Those concerns represent the industry’s position.

They do not mean every imported vehicle directly eliminates a local job or displaces one locally assembled vehicle.

Some imported models enter segments where no equivalent locally assembled vehicle exists.

Others may initially arrive as CBU units before their manufacturers invest in local assembly.

Imports Can Also Increase Buyer Choice

For Pakistani buyers, the import increase has another side.

The market now offers a much broader selection of vehicles than it did only a few years ago.

This is especially visible in:

• electric cars

• plug-in hybrids

• range-extended EVs

• compact crossovers

• premium Chinese SUVs

Several manufacturers use CBU imports to test customer demand before deciding whether Pakistan can support local assembly.

That gives consumers access to newer technology earlier, but it also creates additional ownership questions.

Anyone buying a newly introduced CBU model should check:

• official distributor status

• authorised dealership network

• parts availability

• warranty terms

• service-centre coverage

• software support

• battery warranty for EVs and hybrids

• home-charging arrangements

• whether the promised motorcar local assembly has actually been confirmed

Buyers can compare current officially offered vehicles through the new cars in Pakistan section on AutoWheels.pk.

Used Imported Cars Require a Different Checklist

A used imported vehicle requires even more careful verification.

Before buying, check:

• chassis number

• import documents

• scheme under which the vehicle entered Pakistan

• auction sheet where applicable

• independent inspection

• accident history

• mileage

• battery condition for hybrids or EVs

• spare-parts availability

• compatibility with local fuel and road conditions

Imported Japanese vehicles can sometimes offer equipment that is difficult to find in similarly priced locally assembled cars, but parts availability and specification differences can complicate ownership.

Buyers can browse current used cars in Pakistan on AutoWheels.pk when comparing options.

Does the $81.4 Million Import Bill Threaten Local Manufacturing?

The $81.4 million figure by itself cannot answer that question.

It tells us how much foreign exchange Pakistan spent on imported new and used motor cars during July and August.

It does not reveal, on its own:

• Exactly how many additional vehicles entered Pakistan

• How much of the increase came from EVs

• How much came from used cars

• How many imported models will later move to CKD assembly

• How many local sales were displaced

• How much local employment was affected

Those questions require separate model-level, unit-volume and investment data.

The fact that locally produced passenger-car sales were also rising strongly during the same period is particularly important.

Pakistan was not simply replacing locally assembled cars with imports.

Overall automotive activity was expanding.

What Could Happen Next?

Three areas will be worth watching through the rest of FY27.

1. CBU Import Value

If the current trend continues, finished imported vehicles will account for a larger share of Pakistan’s automotive spending.

That will be particularly relevant if more EV and PHEV brands launch before establishing local assembly.

2. Local Assembly Investment

Several companies have either announced or discussed local production.

The real economic effect of the current import wave will depend heavily on whether those plans result in actual CKD assembly.

A brand that begins with imports and later establishes production has a different long-term impact from one that remains permanently dependent on CBU vehicles.

3. Used-Car Import Volumes

The Gift Scheme and Transfer of Residence routes will remain closely watched after the 2026 policy changes.

Future government amendments could significantly affect used-car supply and pricing.

What This Means for Pakistani Buyers

In the short term, the increase in imports means more choice.

Pakistani buyers now have access to vehicles and technologies that were previously unavailable, particularly in electrified segments.

But more choice also makes due diligence increasingly important.

A new imported car can look attractive on specifications and price, but long-term ownership depends on:

• distributor stability

• parts

• servicing

• warranty

• resale

• charging infrastructure

• localisation plans

A lower purchase price does not necessarily mean a lower long-term ownership cost.

Final Take

Pakistan’s motor-car import bill reaching $81.4 million during July and August 2026 is a significant increase, but the headline requires careful interpretation.

The reported 36% increase is in dollar value, not vehicle volume.

The rise reflects both new CBU vehicles entering the market and continued used-car imports through permitted schemes.

At the same time, Pakistan’s locally produced passenger-car market was also recording much stronger sales.

For buyers, the immediate effect is a wider selection of cars and technologies.

For the industry and policymakers, the bigger question is whether the current wave of imported vehicles eventually translates into local assembly, stronger dealer networks and sustainable parts support — or remains dependent mainly on finished imports.