LAHORE: Pakistan has approved major reforms to the country’s vehicle import regime, abolishing the Personal Baggage Scheme and introducing tighter controls under the Transfer of Residence and Gift Schemes.
The measures aim to curb the misuse of existing facilities and align national import procedures with international standards.
The decisions were taken by the Economic Coordination Committee (ECC) during its meeting on December 9, chaired by Finance Minister Muhammad Aurangzeb.
A summary submitted by the commerce ministry informed the committee that the Personal Baggage Scheme, previously permitting vehicle imports for individuals who had spent 180 days abroad, was being “misused for commercial purposes.”
Acting on this assessment, the ECC approved its complete abolition. Under the revised policy, the Transfer of Residence and Gift Schemes will continue but with significantly strengthened requirements.
All vehicles imported under these schemes must now meet the same safety and environmental standards applicable to commercial imports, ensuring that only compliant and quality-assured vehicles enter the Pakistani market.
The government has also extended the eligibility period for importing a vehicle under these schemes. Individuals must now have completed at least 850 cumulative days abroad over the previous three years, replacing the earlier two-year benchmark.
Furthermore, imported vehicles will be non-transferable for one year, preventing immediate resale and discouraging commercial exploitation.
The commerce ministry has proposed amendments to the Import Policy Order 2022 to reflect these policy adjustments.
These changes will be formally incorporated into Appendix F once the government issues a Statutory Regulatory Order (SRO), which will bring the new rules into effect.
The domestic auto industry has welcomed the measures, noting that stronger import regulations are essential for sustainable sectoral growth.
Shehryar Qadir, senior vice chairman of the Pakistan Association of Automotive Parts & Accessories Manufacturers (Paapam), highlighted the industry’s economic contribution, stating that the sector comprises “around 1,200 factories, employs 2.5 million people, generates Rs500 billion [$1.78 billion] annually in government revenue, and holds $5 billion in foreign investment.”
He cautioned that “import-friendly policies risk undermining these gains, especially at a time when industrial revival and localization are declared priorities.”
Local manufacturers have also raised concerns about increasing used-vehicle imports, estimating a Rs50 billion ($178 million) loss over the past year due to the influx of foreign vehicles. The updated import regime is expected to address these concerns by closing loopholes and ensuring stricter regulatory compliance.
With the ECC’s approval, Pakistan moves toward a more transparent and tightly governed vehicle import system. The timely issuance of the SRO will be the next critical step in operationalizing these reforms and supporting the government’s commitment to strengthening domestic industry and improving regulatory oversight.
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