Car imports into Pakistan recorded a sharp decline of 40% in June 2025 on a year-on-year (YoY) basis, according to the latest data released by the Pakistan Bureau of Statistics (PBS).

This decline coincides with the government's ongoing efforts to lift the ban on the commercial import of vehicles under a newly finalised tariff rationalisation policy.

According to the PBS, imports of Completely Built Units (CBUs) fell to US$ 20.34 million in June 2025, down from US$ 33.74 million in June 2024.

On a month-on-month (MoM) basis, imports also registered a significant decline of 31.46%, compared to US$ 29.68 million in May 2025.

Industry sources attribute the downturn primarily to a cautious wait-and-see approach by the market following the government's announcement regarding the reintroduction of commercial imports of used vehicles.

Many importers are reportedly deferring shipments until the formal notification of the new policy, which is expected to take effect from September 2025.

Government officials have indicated that the revised import policy is intended to broaden consumer choice - particularly for affordable vehicles - and to foster increased competition for domestic automakers. "By lifting the ban on commercial car imports, the objective is to promote the availability of quality vehicles at competitive prices," a senior official stated.

Despite the monthly contraction, total car imports for the fiscal year 2024-25 have recorded a modest increase of 3.44%, rising to US$ 278.17 million from US$ 269 million in the previous fiscal year.

This suggests that overall consumer demand for imported vehicles remains resilient, although recent policy uncertainty has led to a temporary slowdown.

Analysts anticipate that, once the policy is formally implemented and the market stabilises, car imports are likely to rebound - particularly if the revised duties are structured to improve affordability for middle-income consumers.

Until that time, both importers and potential buyers are expected to adopt a cautious stance in response to the evolving policy landscape and pricing outlook.