Car Imports Surge 61% to $32M in July

Islamabad, August 23, 2025, 08:44 PM PKT — Pakistan’s car imports have exploded by 61% to $32.803 million in July 2025, up from $20.327 million in July 2024, fueled by sweeping tariff cuts under the Finance Act 2025, with Pakistan Bureau of Statistics data showing a 62% rise in local currency terms from Rs5.757 billion to Rs9.335 billion, as per official reports. This surge, triggered by tariff reductions from July 1, aims to formalize imports, curb smuggling, and expand consumer choices, aligning with IMF-backed trade liberalisation and customs reforms.

Yet, the local automotive industry sounds the alarm, with major manufacturers warning of threats to domestic production and investment, already strained by rising energy costs, compliance issues, and new carbon taxes. The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) fears job losses for two million workers and disruption to the 70% local vendor base, while the Pakistan Automotive Manufacturers Association (PAMA) reports a 49% sales drop in locally assembled vehicles, with Pak Suzuki plunging 72%. Experts caution that without support for local industry, uncontrolled imports could weaken Pakistan’s automotive base, despite government hopes of boosted tax revenues. Web context on trade policies shows past imbalances, while posts found on X reflect concern—some welcome choices, others dread local fallout. Critically, the narrative of “economic reform” may mask industry neglect—web data hints at past failures, and X sentiment suggests distrust in balanced growth, pointing to potential risks.