The federal government has completely abolished the Personal Baggage Scheme for used car imports to stop its misuse for commercial selling.
Federal Minister for Commerce Jam Kamal Khan confirmed in the National Assembly that the cabinet approved removing the Personal Baggage facility after the Economic Coordination Committee and federal cabinet’s approval. He responded to the queries by MNA Dr. Shazia Sobia during the National Assembly’s Question Hour.
The decision follows widespread commercial abuse by importers using overseas passports to bring in second-hand vehicles. The revised policy aims to support genuine overseas Pakistanis while ensuring benefits do not go to commercial exploiters.
The Ministry of Commerce stated that the amendments (issued via SRO 61(I)/2026) were finalized after consulting key stakeholders, including the Ministry of Overseas Pakistanis and Human Resource Development.
Key Changes to Vehicle Import Rules
While the government scrapped the baggage option, it retained the Gift Scheme and Transfer of Residence (TR) Scheme with much tougher rules.
- Personal Baggage Ended: Overseas Pakistanis can no longer bring used cars into the country under the Personal Baggage category.
- One-Year Resale Ban: Vehicles imported under the Gift or Transfer of Residence schemes cannot be sold or transferred to anyone for one year.
- Same-Country Requirement: For Transfer of Residence, the vehicle must be shipped directly from the country where the overseas Pakistani officially resides
- Longer Overseas Stay: Importers must show at least three years of residency abroad, including a minimum cumulative stay of 850 days
- Waiting Period Increased: The required waiting gap between importing vehicles under these schemes has been raised from two years to three years.
- Commercial Safety Standards: Imported used cars must now meet the exact same safety and environmental standards applied to regular commercial imports.
Finance Minister Muhammad Aurangzeb also clarified that no region in Pakistan holds an exemption allowing duty-free or tax-free vehicle imports.
