Used car imports thru ‘personal baggage’ abolished

The Pakistani government has eliminated the Personal Baggage Scheme for importing used cars, according to Commerce Minister Jam Kamal Khan. The decision, approved by the Economic Coordination Committee and the federal cabinet, comes after the scheme was found to be being used improperly for commercial ends. In response to a question from MNA Dr Shazia Sobia in the National Assembly’s Question Hour, the minister clarified that the scrapped scheme would be replaced by the Gift and Transfer of Residence schemes, which now come with stricter rules to deter misuse for commercial reasons.

Under the retained schemes, vehicles must now comply with minimum safety, environmental and regulatory standards applicable to commercial imports, and there is a longer waiting period before they can be transferred. The minimum stay-abroad requirement, which previously stood at two years, has been extended to three years, with a minimum of 850 cumulative days of stay required.

Additionally, a new condition stipulates that vehicles imported under these schemes must be imported from the same country as the sender's residence, except for the Transfer of Residence Scheme. The ministry attributed these changes to consultations with relevant stakeholders, including the Ministry of Overseas Pakistanis and Human Resource Development.

Finance Minister Muhammad Aurangzeb added that no part of Pakistan permits duty- and tax-free vehicle imports, emphasizing that all imported cars and vehicles must pay the required duties and taxes.