The government of Pakistan is set to end the Personal Baggage Scheme that currently allows overseas Pakistanis to import used vehicles under special exemptions, according to a proposal submitted by the Ministry of Commerce to the Economic Coordination Committee (ECC).
Under the proposed plan, the other two import routes, the Transfer of Residence Scheme and the Gift Scheme, would remain but under much stricter rules to prevent misuse.
The review comes amid growing concern from local automakers and parts manufacturers, who claim that the flood of used car imports has undermined domestic production, led to job losses and inflicted nearly Rs 50 billion in losses on vendor firms.
Final approval rests with the ECC. Until a decision is taken, the auto sector including importers, manufacturers and regulators remains on alert.
