PAMA Calls for Review of Used Car Gift Scheme Amid Misuse Allegations

ISLAMABAD: The Pakistan Automotive Manufacturers Association (PAMA) has formally requested the government to reassess its Gift Scheme for used vehicles, citing concerns over its misuse for commercial car trading. In a letter addressed to Haroon Akhtar Khan, the Prime Minister’s Advisor on Industries and Production, dated October 28, PAMA highlighted a significant surge in imports under this scheme.

PAMA’s letter outlines that the original intent of the Gift Scheme was to facilitate personal vehicle transfers among individuals, but it has been exploited by commercial entities to import vehicles for resale. This misuse threatens the local automotive industry and undermines the regulatory framework intended to govern vehicle imports.

The implications of this situation are profound, as unchecked imports can lead to increased competition for local manufacturers, potentially harming the economy and job market within the automotive sector. PAMA’s concerns reflect a broader anxiety among local manufacturers about maintaining market stability and protecting domestic production.

In response to these allegations, the government is expected to convene a meeting with stakeholders from the automotive sector to discuss potential reforms to the Gift Scheme. PAMA is advocating for stricter regulations to ensure that the scheme serves its intended purpose and does not facilitate commercial exploitation.