Gift Scheme Car Imports Top 2,000 in October Despite Tough Rules

More than 2,000 used cars arrived in Pakistan under the overseas-Pakistani gift scheme in October 2026, according to auto-parts vendors quoted by Dawn on 10 November. That comes on top of 2,238 units in September — and it is happening even though tougher import rules have been in force since January 2026. Local parts makers say the trend is hurting local assembly, while buyers get more choice but must watch out for the one-year transfer lock.

What happened

• October 2026: over 2,000 used vehicles came in under the gift scheme, according to industry vendors cited by Dawn (10 Nov 2026).
• Steady climb since May: former PAAPAM chairman Aamir Allawala told Dawn that only 7 vehicles arrived under the scheme in May 2026, rising to 2,238 in September.
• His allegation: Allawala claims many of these cars are bought at Japanese auctions, paid for through informal (hawala) channels and then sold locally for cash. This is an industry claim, not an official finding.
• Bigger picture: Pakistan Bureau of Statistics (PBS) data shows imports of completely built-up (CBU) vehicles, new and used, rose 40% to $126 million in July–September 2026, up from $90 million a year earlier. Part of that is new brands importing CBUs to test demand before local assembly.

Gift-scheme arrivals by month (2026)

June figures were not given in the sources we checked. These are industry-reported numbers, not an official customs release.

The rules that were meant to slow imports

The Commerce Ministry tightened the import policy through SRO 61(I)/2026, dated 15 January 2026. The key points:

• The personal baggage scheme for used vehicles was removed.
• The gift and transfer of residence (TR) schemes stay, but with stricter conditions.
• The minimum gap between two imports by the same person went from two years to three.
• Cars must be no more than three years old.
• The sender must have lived abroad for at least three years, with at least 850 cumulative days out of Pakistan.
• Gifts can only go to close family: parents, spouse, children, brothers or sisters.
• Vehicles imported under gift or TR are non-transferable for one year from the date of import.
• None of this is duty-free — full customs duties and taxes still apply.

Despite these conditions, the numbers above show monthly arrivals are now higher than before the summer.

Why local parts makers are worried

The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) says imports are eating into demand for locally made cars and parts. According to its figures reported by Dawn:

• About 1,200 local component makers supply locally assembled cars, with roughly Rs1.5–2.5 million worth of local parts per car.
• Local content is around 50–65% in Japanese-brand cars, 20–25% in Korean cars and 0–5% in many Chinese cars.
• PAAPAM chairman Abdul Rehman Aizaz argued the new Auto Policy 2026–31 favours imports, and estimated buyers may see only 5–7% lower prices from the tax cuts — an industry estimate, not a government figure.
• PAAPAM also compared CBU tariffs abroad — India 120%, Thailand 80%, Indonesia 52% — with the 15% it says the policy proposes.

You can read our earlier coverage of the Auto Policy 2026–31 for the government's side.

What it means for buyers in Quetta and across Pakistan

More gift-scheme imports usually mean more Japanese cars — hybrids, compact kei cars and models not sold officially here — appearing in showrooms in Quetta, Karachi and elsewhere. That is good for choice. But there is an important catch: if the car was imported less than a year ago, it legally stays in the importer's name. You can drive it, but you are not the registered owner yet.

Before you pay for a recently imported car, check:

1. Import route and date — ask to see the customs bill of entry. Was it gift, TR or commercial, and when did it land?
2. Whose name is on the papers — and when the one-year lock ends.
3. Written agreement — who is responsible for accidents, fines and the final transfer, and what happens if the transfer never takes place.
4. Independent inspection — book a car inspection in Quetta before you pay, especially for hybrids where battery health matters.
5. Compare prices — check similar used cars and locally assembled new car prices before deciding.

Already own a car you want to sell? You can sell your car free on QuettaWheels.

Frequently asked questions

How many used cars came to Pakistan under the gift scheme in October 2026? Auto-parts vendors quoted by Dawn put the figure at over 2,000 vehicles, after 2,238 in September. These are industry-reported figures, not an official customs release.

Can I transfer a gift-scheme car into my name immediately? No. Under SRO 61(I)/2026, cars imported under the gift or transfer-of-residence schemes are non-transferable for one year from the date of import.

Are gift-scheme imported cars duty-free? No. Full customs duties and taxes apply; the scheme only controls who may send a car and under what conditions.

How old can a car imported under the gift scheme be? Under the 2026 rules, cars imported under the gift or transfer-of-residence schemes can be no more than three years old.

Sources: Dawn — Used car imports under gift scheme persist despite tough restrictions (10 Nov 2026); PakWheels — Used Car Imports Continue Despite Strict Gift Scheme Rules (10 Nov 2026); PakWheels — The One-Year Transfer Ban's Impact on Imported-Car Buyers (29 Sep 2026); Gulf News — Pakistan bans used-car imports under personal baggage scheme (updated 20 Aug 2026)

#used car imports#gift scheme#auto policy#imported cars#PAAPAM