Pakistan issues stricter rules for vehicle imports

Pakistan has made sweeping changes to its vehicle import policy and tightened rules for overseas Pakistanis to bring vehicles into the country.

The amendments to the Import Policy Order 2022 were approved by the federal cabinet – Pakistan’s highest decision-making body – on Wednesday and formally notified by the Ministry of Commerce.

Earlier, Pakistan permitted the import of cars under three categories. Overseas Pakistanis who had spent between 180 and 700 days abroad were allowed to import used vehicles under the Gift Scheme, Personal Baggage Scheme, and Transfer of Residence Scheme.

Now the policy has been revised to eliminate the personal baggage scheme.

Officials said the changes are intended to regulate vehicle imports more effectively, discourage misuse of existing schemes, and align imports with safety and environmental requirements.

The government has also restricted ownership transfers, barring the sale or transfer of an imported vehicle to another person for at least one year after import.

The eligibility of overseas Pakistanis to import cars has also been modified.

Earlier, overseas Pakistanis were required to have stayed abroad for 700 days to be eligible to import cars. Now, the duration has been increased to 850 days.

The amendments also introduce mandatory minimum safety and environmental standards for the import of used vehicles. a move aimed at improving road safety and reducing environmental impact.

Under the Transfer of Residence scheme, the government clarified that vehicles must be imported from the same country where the overseas Pakistani has been residing.

H.M. Shahzad, the President of All Pakistan Motor Dealers Association, raised concerns over the policy change regarding the origin country of the vehicle.

He said a majority of the Pakistani diaspora lives in the Middle East, where left-hand cars are used, unlike Pakistan, where driving is on the right side.

If the restriction is imposed on the vehicle’s country of origin, it will affect the majority of overseas Pakistanis, he added.