Used car imports thru ‘personal baggage’ abolished

Applied car imports thru 'personal baggage' abolished. Jamal Shahid Published August 20, 2026 Updated August 20, 2026 07: 47am.

Key points

• The policy was subsequently amended through SRO 61(I)/2026 dated Jan 15, 2026.
• The minister was responding during the National Assembly's Question Hour to queries raised by MNA Dr Shazia Sobia.
• The ministry remarked the changes had been introduced after consultations with stakeholders, including the Ministry of Overseas Pakistanis and Human Resource Development.
• Govt notes scheme was being misused for commercial purposes Gift and Transfer of Residence schemes retained with tighter conditions.
• Jamal Shahid is an Islamabad-based reporter for Dawn with over two decades of experience.

According to ISLAMABAD: Minister for Commerce Jam Kamal Khan on Wednesday, the administration had abolished the Pers­onal Baggage Scheme for the import of employed vehicles after approval by the Economic Coor­di­n­a­tion Committee and the federal cabinet, while tightening conditions under the retained Gift and Transfer of Residence schemes to curb their misuse for commercial purposes.

For context, the minister was responding during the National Assembly's Question Hour to queries raised by MNA Dr Shazia Sobia. This person asked whether the administration had decided to abolish the Personal Baggage Scheme to prevent its commercial misuse and sought details of changes introduced in the vehicle import policy.

In a written reply, the commerce ministry remarked the revised policy required vehicles imported under the retained Gift and Transfer of Residence schemes to meet minimum safety, environmental and regulatory standards applicable to commercial imports of employed vehicles.

While vehicles imported under these schemes will remain non-transferable for one year, the interval for importing vehicles under the schemes has additionally been climbed from two years to three years.

In practice, the minimum stay-abroad requirement has been enhanced to three years, with at least 850 cumulative days of stay, for all schemes.

In practice, the condition that a vehicle must be imported from the same country where the sender resides will now apply only to the Transfer of Residence Scheme.

For context, the ministry remarked the changes had been introduced after consultations with stakeholders, including the Ministry of Overseas Pakistanis and Human Resource Development.

While ensuring that benefits accrued only to bona fide beneficiaries and discouraging misuse of the schemes, it remarked the policy adjustments were aimed at facilitating overseas Pakistanis seeking to import vehicles for genuine personal apply.

According to the ministry, the schemes had originally been intended to facilitate overseas Pakistanis importing vehicles for personal employ, but misuse, particularly of the Personal Baggage Scheme, for commercial purposes had been identified. The policy was subsequently amended through SRO 61(I)/2026 dated Jan 15, 2026.

For context, the ministry remarked it was too early to assess the impact of the revised policy on overall vehicle imports, but imports could decline after the abolition of the Personal Baggage Scheme and tighter conditions under the remaining schemes.

Separately, Finance Minister Muhammad Aurangzeb remarked there was no provision allowing the import of cars or other vehicles without payment of duties and taxes in any part of the country. He stated this in written response to a question by MNA Moin Aamer Pirzada. This person had asked whether duty- and tax-free vehicle imports were permitted in any region of Pakistan.

Jamal Shahid is an Islamabad-based reporter for Dawn with over two decades of experience. As well as diplomatic events, climate change, and human rights problems in the capital, he covers the Public Accounts Committee and the National Assembly's Question Hour.

In short, used car imports thru 'personal baggage' abolished is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.