PAAPAM Warns of 300,000 Job Losses Due to New Used Vehicle Import Rules

ISLAMABAD: The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has raised alarms over a recent notification from the Engineering Development Board (EDB) that permits businesses to import used vehicles without an EDB license. This decision, announced on September 30, 2026, threatens to jeopardize approximately 300,000 direct jobs within the automotive sector.

PAAPAM, which represents over 1,200 manufacturers in the automotive parts industry, argues that the new rule undermines local production and could lead to significant job losses. The association’s officials have expressed concerns that unrestricted imports will flood the market with cheaper, used vehicles, thereby diminishing the demand for locally manufactured cars and parts.

The implications of this policy extend beyond job security; it poses a risk to the overall stability of Pakistan’s automotive industry. With the potential for widespread layoffs, the economic repercussions could ripple through related sectors, affecting suppliers and service providers. Industry experts warn that this could lead to a decline in investment and innovation within the sector.

In response to these concerns, PAAPAM is calling for an urgent review of the EDB’s decision. The association plans to engage with government officials and stakeholders in the coming weeks to advocate for policies that support local manufacturing and protect jobs. A meeting is expected to take place soon to discuss the future of the automotive industry in light of these new regulations.