Car imports in Pakistan dropped 40% in June 2025 as importers await new government policies expected to reshape the auto market.
In a shocking turn of events, automobile imports in Pakistan fell 40% year-on-year in June 2025, the latest data released by the Pakistan Bureau of Statistics (PBS) indicated. The drop comes as expectations for a new government policy, potentially to transform the nation’s auto import scene, gain momentum.
The value of Completely Built Unit (CBU) automobile imports declined to $20.34 million in June 2025 from $33.74 million during the same month the previous year. Month-to-month, imports also decreased by 31.46%, from $29.67 million in May 2025.
Despite the dip during June, overall automobile imports for FY 2024–25 increased marginally by 3.44%, to $278.17 million from $269 million in FY 2023–24.
Policy Change on the Horizon
Industry people blame the fall on a “wait-and-see” strategy by importers, who are delaying purchases in hopes of a tariff rationalization policy to be made public in September 2025.
Major provisions of the proposed policy are
• Removing the prohibition on commercial imports of used cars
• Amending import duties to provide foreign automobiles greater accessibility
• Fostering competition in the domestic automobile market
Sources indicate that the policy is intended to relax restrictions and increase consumer choice, especially among middle-income buyers.
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Market Reaction
Importers and dealers are said to be cautious, opting to hold back shipments until the new rules are formally notified. This has resulted in a short-term slowdown in inventory and sales, mainly in the used and premium car segments.
In the meantime, domestic car manufacturers are keeping a close eye on the situation, with the surge in imported vehicles potentially eating into their market share and pricing plans.
Auto Industry Outlook
Experts foresee a robust turnaround in car imports in the latter half of the year, subject to the policy living up to expectations. If tariffs come down and curbs are removed, Pakistan’s auto sector may witness an upsurge in action by Q4 2025.
The sharp drop in car imports in Pakistan reflects a market in flux, driven by policy uncertainty and shifting consumer expectations. As the government prepares to unveil its new auto import framework, stakeholders across the industry are bracing for what could be a transformative chapter in Pakistan’s automotive future.
