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Used-Car Import Scandal: 6 Critical Developments as FIA Raids EDB

Pakistan’s used-car import controversy has intensified after the Federal Investigation Agency (FIA) reportedly raided the Engineering Development Board (EDB) over a notification issued on September 30, 2026. The reported action has brought fresh attention to questions about the approval process, inspection requirements, and the officials involved in changing commercial used-vehicle import rules.

According to a report by ProPakistani, investigators sought records linked to the notification and took electronic devices from officials they believe may have relevant information. The report also says an officer who signed the disputed notification was removed from service, while a separate dispute involving the EDB chief has continued in court.

The developments matter to importers, car buyers, regulators, and the thousands of vehicles reportedly waiting at Karachi port. However, allegations about improper approvals or links between officials and importers remain claims that require investigation and independent verification.

Imported vehicles at a port or vehicle storage facility. Image for illustration.

FIA Raid at EDB: What Is Known So Far?

The FIA reportedly visited the EDB office after concerns emerged over the September 30 notification governing commercial imports of used vehicles. According to sources cited by ProPakistani, the team requested official records and collected phones and laptops from certain officials as part of its inquiry.

The report says the EDB chief had written to the FIA seeking action and identifying officials whose records should be examined. The investigation is reportedly focused on how the notification was prepared and whether the required approvals were obtained.

The controversy has also involved allegations of connections between used-car importers and senior EDB officials. These claims have not been established as facts in the reporting available so far. The FIA’s response was still awaited when ProPakistani published its report on October 1.

The distinction is important: a raid and collection of records indicate investigative activity, not proof of wrongdoing. The findings of the investigation, any formal charges, and responses from the individuals concerned will be necessary to establish what happened.

September 30 Notification: What Changed in Used-Car Import Rules?

The September 30 notification reportedly reopened commercial imports of used vehicles and revised eligibility and inspection requirements. The changes affect who can import vehicles commercially and how compliance documents are checked.

Under the reported revised framework:

  • More business structures can import: Proprietorships and partnership firms with valid National Tax Numbers and sales tax registration can qualify, alongside companies incorporated under the Companies Act, 2017.
  • Minimum capital requirement changed: The earlier provision for a minimum capital requirement to be determined by the Federal Cabinet was removed, according to the report.
  • Pre-shipment inspection is required: Importers must obtain a certificate from an internationally accredited inspection body registered with the Pakistan Standards and Quality Control Authority (PSQCA).
  • Arrival-stage document verification: After a vehicle reaches Pakistan, documents are to be verified by the local representative of the same inspection company that performed the pre-shipment inspection.

The notification reportedly retains 62 United Nations Economic Commission for Europe (UNECE) WP.29 safety and environmental regulations. The central disagreement is not simply whether standards exist, but whether the revised inspection process provides adequate verification and whether the changes were issued through the proper approval process.

For background on the new inspection framework, readers can review the PakWheels report on Pakistan’s updated used-vehicle safety and import rules .

Vehicle Inspection Concerns Raise Safety Questions

Vehicle inspection is one of the most consequential parts of the Used-Car Import Scandal because it affects whether imported cars meet safety and environmental requirements before entering the local market.

The September 30, 2025 notification had required third-party post-shipment inspection at a facility designated by the EDB, with the importer responsible for the cost. The newer process described in the report relies on a pre-shipment certificate and verification of documents by the local representative of the same inspection company after arrival.

These are different approaches to checking imported vehicles. A pre-shipment inspection can identify issues before a vehicle is shipped, while physical checks after arrival may help detect differences between the inspected vehicle and the one delivered. Document verification can confirm the authenticity of a certificate, but it is not necessarily equivalent to a full physical inspection.

That distinction has prompted concerns about whether the revised system can reliably identify unsafe, damaged, or non-compliant vehicles. The report cites sources warning that weak post-shipment checks could create risks if vehicles are cleared without sufficient physical examination.

The applicable UNECE standards cover safety and environmental requirements. Their effectiveness in practice depends on the inspection bodies, verification procedures, enforcement, and the authorities responsible for oversight.

Used-Car

Vehicle inspections are intended to verify safety, condition, and compliance before imported cars enter the market.

Around 15,000 Used Vehicles Reportedly at Karachi Port

One immediate concern highlighted in the report is the number of vehicles said to be waiting at Karachi port. Sources cited by ProPakistani estimated that around 15,000 used vehicles could potentially be released under the revised notification.

The figure has not been independently confirmed in the sources reviewed for this article. It should therefore be treated as a reported estimate rather than an official port inventory.

The vehicles’ status may depend on the applicable import rules, customs clearance, inspection documents, and any further directions from the relevant authorities. The notification’s implementation and the outcome of the investigation could affect how the process unfolds.

For importers, delays can create additional costs related to storage, financing, and shipment arrangements. For buyers, the main concern is whether vehicles reaching the market have undergone the required checks and meet the relevant standards.

The issue is not only about how quickly vehicles can be cleared. It also concerns the consistency and credibility of the checks used to approve them.

ECC Decision and the Dispute Over Approval Authority

The Economic Coordination Committee (ECC) had previously deferred the matter and reportedly called for further work on the EDB’s inspection system. Sources cited in the report allege that the September 30 notification was issued despite that process.

The report also attributes concerns to Federal Minister Musadik Malik, who reportedly questioned whether the notification could have been issued in the manner described. The EDB was also said to be required to submit a report to the Prime Minister.

These developments place the approval process at the centre of the dispute. Government notifications can change commercial requirements and affect businesses across an entire sector. Establishing which authority had the power to approve the changes, whether the required consultations took place, and how the final notification was authorised will be important to resolving the controversy.

The issue also involves the position of the EDB chief. According to ProPakistani, the Prime Minister had reportedly terminated the CEO’s contract on the recommendations of a two-member committee. The CEO then obtained a stay order from the Islamabad High Court and resumed work.

The legal status and full details of that case should be confirmed through court records or official statements. A stay order and an administrative decision are separate developments, and neither by itself establishes the truth of the allegations surrounding the import notification.

Officer Removed as Investigation Continues

The ProPakistani report says the officer who signed the disputed notification was dismissed with immediate effect. It also alleges that the officer was considered close to the current EDB chief and notes that he was reportedly present at the EDB office on the day of the report.

The article further says the officer had been posted on deputation, with the Ministry of Industries and Production reportedly informed about the posting while the Establishment Division issued the deputation notification.

These details raise questions about administrative responsibility and the chain of authorisation. However, the reported removal should not be treated as proof that the officer committed misconduct or that the notification was unlawful. The reasons for the removal, the applicable service procedure, and any response from the officer are important details that remain to be clarified.

The FIA investigation may help establish who prepared, reviewed, approved, and issued the notification. Any conclusions about individual responsibility should depend on documentary evidence and the relevant legal process.

What the Used-Car Import Scandal Means for Pakistan’s Auto Market

The controversy could have implications beyond the offices of the EDB and the Ministry of Industries and Production.

For commercial importers: Changes to eligibility rules and inspection requirements can affect entry costs, compliance planning, and the time needed to bring vehicles into Pakistan. Uncertainty over the notification’s status may also complicate business decisions.

For consumers: Buyers may be concerned about vehicle condition, accident history, mileage accuracy, safety equipment, and whether imported vehicles have been inspected properly. The existence of technical standards does not remove the need for effective enforcement.

For regulators: The dispute highlights the importance of transparent procedures, clearly defined responsibilities, and consistent communication between government bodies. A reliable inspection framework needs to be both technically sound and properly authorised.

For the wider market: If the rules are revised, suspended, or clarified, import activity and the availability of used vehicles could be affected. The scale and direction of any market impact will depend on official decisions and how the rules are implemented.

Pakistan’s commercial used-car import framework has already undergone policy changes. In September 2025, the ECC approved commercial imports of used vehicles subject to age limits, safety and environmental standards, and additional regulatory duties. The government’s official press release on the ECC decision  provides context for that earlier policy step.

Final Thoughts

The Used-Car Import Scandal has brought renewed scrutiny to Pakistan’s commercial vehicle import rules, the EDB’s role, and the inspection framework governing imported cars. The reported FIA raid, the removal of the notification’s signatory, and the dispute over approval procedures are significant developments, but the central allegations remain unresolved.

The next important steps are likely to include clarification from the FIA and relevant ministries, a review of the notification’s legal and administrative basis, and further information about the vehicles awaiting clearance at Karachi port.

For importers and buyers, the practical priority is clear: follow official policy updates and ensure that vehicles meet the applicable safety, environmental, customs, and inspection requirements. The outcome of the investigation will help determine what changes, if any, are needed in the import process.

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