PAAPAM raises alarm over rampant misuse of used car import schemes

The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has raised alarm over the rampant misuse of used car import schemes —originally intended for overseas Pakistanis — which now fuel a Rs 200 billion black market and threaten the survival of Pakistan’s auto parts industry. Introduced under the Gift, Transfer of Residence, and Baggage schemes, these provisions were meant to facilitate genuine personal vehicle imports. Instead, they’ve become conduits for commercial exploitation, money laundering, and tax evasion. Vehicles are imported using purchased passports and paid for via Hawala channels, then sold through unregistered dealers with no FBR reporting — unlike locally assembled vehicles, which require full tax documentation.