FIA Reportedly Raids EDB Over Controversial Used-Car Import Order

Pakistan’s commercial used-car import framework has become the subject of a growing regulatory dispute after the Federal Investigation Agency reportedly searched the Engineering Development Board’s offices and sought records connected with a September 30, 2026 notification that changed eligibility and inspection requirements for imported used vehicles.

According to ProPakistani, FIA officials sought documents and electronic records and took possession of phones and laptops belonging to some officials whose roles are being examined.

The report also says the officer who signed the disputed notification was subsequently removed from his position.

However, no public FIA statement confirming the raid, identifying suspects or establishing wrongdoing was located by Info-Matix at the time of publication.

For that reason, claims concerning misconduct, unauthorised changes or an alleged relationship between importers and EDB officials remain allegations under scrutiny rather than established findings.

What Is the Used-Car Import Dispute About?

The controversy centres on rules governing the commercial import of used vehicles into Pakistan.

Pakistan formally reopened commercial used-vehicle imports under changes introduced in 2025.

The Economic Coordination Committee approved commercial imports in September 2025, initially allowing vehicles less than five years old until June 30, 2026.

The ECC also decided that the age restriction would subsequently be removed, while a 40% regulatory duty imposed on commercial used-car imports would gradually decline by 10 percentage points annually until reaching zero in FY2029-30.

The Ministry of Commerce subsequently issued SRO 1895(I)/2025 on September 30, 2025, titled “Removal of Quantitative Restrictions on Commercial Import of Used Vehicles.”

However, allowing imports was only one part of the framework.

Authorities also had to determine how imported vehicles would be inspected, which companies could import them and how Pakistan would ensure compliance with international vehicle safety and environmental standards.

Those implementation questions are now at the centre of the latest dispute.

What Changed in the September 30, 2026 Notification?

According to reporting on the new EDB notification, the September 30, 2026 framework widened the types of businesses eligible to commercially import used vehicles.

Earlier EDB requirements had limited commercial importing primarily to companies incorporated under the Companies Act, 2017.

An April 2026 EDB code of conduct reportedly required such companies to:

• Be registered under the Companies Act
• Maintain a valid NTN
• Remain active taxpayers
• Obtain EDB registration
• Conduct transactions through banking channels
• Provide after-sales and spare-parts arrangements
• Complete pre-shipment inspection
• Complete post-shipment inspection after arrival

Under the September 30 rules reported by ProPakistani and other outlets, eligibility was expanded to include:

• Companies incorporated under the Companies Act
• Proprietorships
• Partnership firms

Proprietorships and partnerships must reportedly hold valid tax registrations.

This expansion in eligibility is one of the changes now being questioned.

Inspection Rules Were Also Changed

The more consequential issue may be how vehicles are inspected.

Under the revised framework, imported used vehicles reportedly require a pre-shipment inspection certificate from an internationally accredited inspection company registered with the Pakistan Standards and Quality Control Authority.

Once the vehicle arrives in Pakistan, documentation can then be verified by the local representative of the same inspection organisation.

This differs from the previous arrangement, which required third-party post-shipment physical inspection at an EDB-designated facility at the importer’s cost.

Critics of the change have raised questions about whether documentary verification after arrival provides the same level of assurance as another physical inspection.

Those concerns do not establish that vehicles imported under the new mechanism are unsafe, but they explain why the inspection regime is receiving significant scrutiny.

ECC Had Already Deferred the Inspection Issue

This is one of the most important verified facts surrounding the controversy.

On September 14, 2026, the Economic Coordination Committee considered a summary from the Science and Technology Division concerning standards and regulatory requirements for commercially imported used vehicles.

Instead of approving a revised system, the ECC deferred the matter.

The committee directed that recommendations first be obtained from a committee specifically constituted to review the EDB vehicle-import inspection regime and that the summary then be resubmitted.

That official decision matters because the disputed EDB notification followed just over two weeks later, on September 30.

Source-based reporting now alleges that the notification changed elements of the system before the review process ordered by the ECC had been completed.

Whether EDB had the necessary legal and administrative authority to make those changes is one of the issues requiring clarification.

FIA Reportedly Seeks Records From EDB

ProPakistani reports that FIA officials subsequently went to the Engineering Development Board and demanded records connected to the September 30 notification.

Electronic devices belonging to officials were also reportedly taken for examination.

According to the same report, the action followed a request from EDB’s current leadership seeking investigation of officials involved in issuing the notification.

No public FIA press release confirming those details was located when this article was prepared.

Info-Matix therefore treats the reported FIA action as credible news requiring further official confirmation rather than as proof that any individual committed wrongdoing.

An investigation or collection of records does not itself establish criminal liability.

Officer Who Signed Notification Reportedly Removed

The official who signed the September 30 notification has reportedly been removed from his position with immediate effect.

The officer has not been named in the official government material reviewed by Info-Matix.

ProPakistani also reported that the individual was still present at the EDB office after the removal order, though that claim has not been independently verified.

Until an official order becomes publicly available, the exact administrative basis and scope of the officer’s removal remain unclear.

EDB Was Already Under Leadership Scrutiny

The controversy also comes during a period of unusual leadership instability at EDB.

On September 17, the Ministry of Industries and Production officially announced that Hamad Ali Mansoor, the EDB’s chief executive officer, had been sent on forced leave pending completion of a high-level departmental inquiry.

The ministry appointed Faisal Nisar Chaudhry, a Grade-20 Secretariat Group officer, to hold additional charge as EDB chief executive.

It is important not to automatically connect that earlier inquiry with the September 30 used-car notification.

The Ministry’s public statement did not say that Mansoor’s forced leave resulted from the later notification, which had not yet been issued.

The two developments therefore should not be presented as the same investigation without further evidence.

Allegations of an Importer-Official Nexus Remain Unproven

The source article reports allegations of links between some used-car importers and EDB officials.

Those claims are particularly serious and should be handled carefully.

No FIA charge, court finding or official investigation result establishing such a nexus was publicly available when Info-Matix reviewed the matter.

Accordingly, no individual or EDB official should be described as corrupt or part of an illegal arrangement on the basis of anonymous-source allegations alone.

Further evidence from the FIA, Ministry of Industries and Production or judicial authorities would be required before those claims could be treated as established fact.

What Safety Rules Still Apply?

Despite changes in inspection procedures, the revised framework reportedly retains compliance requirements based on 62 UNECE WP.29 regulations.

UNECE vehicle regulations cover areas such as:

• Braking
• Seat belts
• Airbags and occupant protection
• Steering
• Vehicle lighting
• Tyres
• Child restraints
• Crash protection
• Emissions
• Electric-vehicle safety

Reporting on the September 30 notification says imported vehicles must comply with applicable UNECE WP.29 requirements or equivalent standards accepted by EDB.

This means the controversy is not about removing every vehicle-safety standard.

The main question concerns how compliance with those standards should be demonstrated and independently verified.

Why Post-Shipment Inspection Matters

Pre-shipment inspection occurs before a vehicle leaves the exporting country.

Post-shipment inspection occurs after it reaches Pakistan.

Using both can create an additional verification layer because authorities are able to physically inspect the vehicle after it enters the country.

A post-arrival inspection could potentially identify issues such as:

• Differences between documentation and the actual vehicle
• Damage occurring after the original inspection
• Altered identification information
• Missing safety equipment
• Modifications made to the vehicle
• Compliance problems not detected earlier

However, requiring another inspection also creates additional costs and can slow vehicle clearance.

The policy debate therefore involves balancing trade facilitation against consumer protection and regulatory oversight.

Around 15,000 Vehicles Are Reportedly at Karachi Port

ProPakistani reports that approximately 15,000 used vehicles are currently at Karachi port and may be affected by the regulatory changes.

Info-Matix was unable to independently verify that figure through an official Karachi Port Trust or Pakistan Customs release.

If accurate, however, the number explains why apparently technical changes to inspection procedures could have substantial financial consequences.

Thousands of vehicles awaiting clearance can represent billions of rupees in inventory, customs duties, storage costs and potential retail sales.

That creates significant commercial interest in how quickly the regulatory dispute is resolved.

Pakistan Has Been Gradually Liberalising Used-Car Imports

The September 2026 controversy needs to be viewed within Pakistan’s wider trade-policy reforms.

The ECC’s September 2025 decision explicitly opened commercial used-car imports while applying a temporary 40% regulatory duty.

That duty was designed to decline over several years before reaching zero in FY2030.

The broader objective is part of Pakistan’s move toward greater trade liberalisation and lower tariff protection.

Supporters of easier used-car imports argue that they can:

• Increase consumer choice
• Increase competition
• Pressure local manufacturers to improve quality
• Provide access to additional vehicle technologies
• Reduce artificial price distortions

Local manufacturers and parts suppliers have raised a different concern: large-scale imported vehicle availability could reduce domestic production and localisation.

Both effects are relevant when assessing the policy.

Used-Car Imports Were Previously Limited Mainly to Personal Schemes

Historically, Pakistan relied heavily on three schemes for importing used vehicles:

• Personal baggage
• Gift
• Transfer of residence

Commercial imports were comparatively restricted.

The government abolished the baggage scheme in January 2026 and tightened inspection requirements for vehicles imported through remaining personal channels. Vehicle import trends nevertheless continued to attract industry attention.

Commercial importing represents a structurally different market because businesses can import vehicles directly for resale instead of relying on individual overseas Pakistanis.

That increases the importance of formal rules covering importer eligibility, consumer protection, warranties, inspections and spare-parts availability.

Why Local Auto Manufacturers Are Watching Closely

Used-car imports have long been controversial within Pakistan’s automotive sector.

Local assemblers argue that imported used vehicles compete directly against locally produced vehicles while contributing less to domestic manufacturing and parts production.

Parts manufacturers also argue that local assembly supports:

• Vendor factories
• Engineering employment
• Tooling and mould development
• Plastic and metal component production
• Tyres and batteries
• Wiring systems
• After-sales networks

Importers and consumers, meanwhile, often argue that used Japanese and other foreign-market vehicles can provide better specifications, safety equipment and value at certain price points.

The dispute is therefore about more than inspection paperwork.

It sits inside a much broader debate over consumer choice versus protection of domestic manufacturing.

Commercial Used-Car Imports Were Approved in 2025

The underlying right to commercially import used vehicles should not be confused with the latest regulatory dispute.

The ECC formally approved commercial imports on September 24, 2025.

The Ministry of Commerce then issued the relevant Import Policy Order amendment on September 30, 2025.

The present controversy instead concerns the detailed regulatory conditions under which those imports can take place, particularly:

• Who may register as an importer
• What inspections are required
• Who performs those inspections
• What happens after vehicles reach Pakistan
• Whether the September 2026 amendments followed the required approval process

Those issues could have significant practical consequences without necessarily reversing the government’s broader decision to permit commercial imports.

Government Has Not Yet Published a Full Explanation

The available official record leaves several important questions unanswered.

The government has confirmed that the ECC deferred the inspection matter on September 14.

It has also confirmed the leadership change at EDB earlier in September.

But public statements reviewed by Info-Matix do not yet explain:

• Who authorised the September 30 notification
• Whether ECC or cabinet approval was legally required
• Why inspection procedures were altered
• Why eligibility was expanded to proprietorships and partnerships
• Whether the notification remains in force
• Whether vehicles currently at ports can be cleared
• What action, if any, the FIA is officially taking

Those questions will be central to determining whether the issue represents an administrative disagreement, a procedural violation or something more serious.

Important Correction to the “Scandal” Framing

The source headline describes the matter as a “used-car import order scandal.”

There is clearly a serious regulatory dispute, and a law-enforcement inquiry has been reported.

However, the term “scandal” can imply that wrongdoing has already been established.

At this stage, several of the strongest claims — particularly allegations involving improper relationships between officials and importers — remain based on unnamed sources and have not resulted in publicly confirmed findings.

For Info-Matix, a more accurate framing is therefore:

“FIA reportedly investigates controversial EDB used-car import notification.”

This preserves the significance of the development without presenting unproven allegations as established facts.

What Happens Next?

Several developments will determine where the dispute goes from here.

The most important will be any formal statement from the FIA confirming its investigation and explaining its scope.

The Ministry of Industries and Production may also need to clarify the legal status of the September 30 notification.

Other issues to watch include:

• Whether the notification is suspended or withdrawn
• Whether the ECC review committee completes its recommendations
• Whether post-shipment physical inspection is restored
• Whether importer eligibility is changed again
• Whether FIA files a formal case
• Whether any EDB officials face disciplinary proceedings
• How Customs treats vehicles already at Pakistani ports

The issue could also affect the implementation of Pakistan’s wider auto and tariff policies.

Bottom Line

Pakistan’s commercial used-car import regime has entered a period of significant regulatory uncertainty after the FIA reportedly sought records from the Engineering Development Board concerning a September 30, 2026 notification.

The notification reportedly widened eligibility for commercial importers and changed the post-arrival inspection mechanism.

The most important confirmed piece of government evidence is that the ECC had already deferred changes to standards and the used-vehicle inspection regime on September 14 and ordered recommendations from a review committee before the matter was resubmitted.

ProPakistani reports that the official who signed the subsequent notification has now been removed and that the FIA collected records and electronic devices.

But no public FIA finding establishing corruption or an illegal importer-official nexus was available when this article was prepared.

The central questions are therefore now procedural as well as investigative: who authorised the September 30 changes, whether the correct approval process was followed, and what inspection system will ultimately govern commercially imported used cars in Pakistan.