The government has introduced sweeping changes to Pakistan’s vehicle import policy, placing significantly tighter conditions on overseas Pakistanis who bring cars into the country.
The Economic Coordination Committee (ECC), chaired by Finance Minister Senator Muhammad Aurangzeb, approved multiple amendments during its latest meeting, many of which aim to curb widespread misuse of transfer and gift-based import schemes.
🚗 Key Change: Vehicle Must Originate From the Same Country of Residence
Under the new rules, cars imported under the Transfer of Residence scheme must now be shipped from the same country where the sender legally resides.
This requirement is meant to eliminate third-country shipments often used to bypass regulations.
The restriction will not apply to vehicles imported under the Gift Scheme.
🌍 Eligibility Made Much Stricter
Overseas Pakistanis must now prove:
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A minimum of 3 years abroad, and
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At least 850 days spent outside Pakistan
This applies to both the Transfer of Residence and Gift schemes.
Officials say the updated criteria ensure only genuine expatriates qualify, not short-term travelers or individuals who attempt to exploit loopholes.
🚫 Personal Baggage Scheme Discontinued
After months of inter-ministerial debate, the Commerce Ministry recommended — and the ECC approved — ending the Personal Baggage Scheme entirely.
Only two schemes will now remain:
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Transfer of Residence
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Gift Scheme
The Ministry of Industries had pushed for abolishing all three schemes due to misuse and foreign exchange losses, but the Ministry of Overseas Pakistanis argued for retaining expatriate relief options.
🛠️ Additional Controls to Curb Misuse
New restrictions approved by the ECC include:
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Commercial-import safety and environmental standards will also apply to expatriate imports
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Mandatory gap between imports extended from 2 years to 3 years
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Imported vehicles will remain non-transferable for 1 year
These changes are intended to align personal imports with broader automotive regulations and prevent speculative trading.
⚡ Other Major ECC Decisions
🔌 Power Sector: Circular Debt Plan Reviewed
The committee instructed the Power Division and Finance Division to jointly prepare a medium-term strategy to gradually reduce government financial support and enforce delivery targets through DISCOs.
⛽ Margins for OMCs and Dealers Revised
The ECC approved revised margins for petroleum dealers and oil marketing companies, with increases capped between 5% and 10%, half payable immediately and half linked to the digitization rollout.
🚫 Chloroform Import Restricted
Chloroform — labeled toxic and carcinogenic — can now only be imported by pharmaceutical companies with a DRAP-issued NOC.
❌ Subsidy Request Rejected
A request from M/s Ghani Glass for a concessionary gas/RLNG rate was rejected, as such subsidies no longer align with policy.
💻 Rs. 1.28 Billion for Pakistan Digital Authority
Funds were approved to support major digital transformation initiatives across government departments.
🏛️ Rs. 5 Billion Allocated for Housing Sector
A separate technical supplementary grant was approved for the Housing and Works Division.
🌾 PASSCO to Be Wound Up
The ECC approved creating a temporary SPV to manage PASSCO’s liabilities and operations until its dissolution.
✈️ Funds Approved for PIA Holding Company
In principle approval was granted to release funds to PIAHCL to cover pension and medical costs of PIACL employees.
