The government has abolished the Personal Baggage Scheme for importing used vehicles, Commerce Minister Jam Kamal Khan confirmed on Wednesday. The Economic Coordination Committee and the federal cabinet approved the bill. The government also tightened the conditions under two related schemes – Gift and Transfer of Residence – which remain in place. Officials said the changes are designed to prevent commercial abuse of import rules intended for personal use.
Key Highlights
- Government drops Personal Baggage Scheme for used vehicle imports
- Gift and Transfer of Residence schemes still exist but with stricter conditions
- Minimum stay abroad increased to three years, 850 cumulative days
- Vehicles under retained schemes not transferable for 1 year
- No duty-free import of vehicles anywhere in Pakistan: Finance Minister responds to Assembly’s questions on import policy
Govt has abolished the Personal Baggage Scheme for used vehicle imports, citing commercial misuse. Under retained Gift and Transfer of Residence schemes, conditions have tightened: import interval rises from 2 to 3 years, vehicles stay non-transferable for a year, and minimum… pic.twitter.com/Lfm5wjzkmi
— Sarmaaya Financials (@sarmaayapk) August 20, 2026
During the Question Hour in the National Assembly, Khan raised the issue. Replying to a question of MNA Dr. Shazia Sobia, the government said it would not do away with the Personal Baggage Scheme to avoid its commercial misuse. She also asked about wider changes to the policy on vehicle import.
The amended policy now requires the vehicles imported under the Gift and Transfer of Residence schemes to meet the same minimum safety, environmental and regulatory standards as are required for commercial used vehicle imports, the commerce ministry said in a written reply. This plugs a gap that previously allowed some imports to skirt standards intended for commercial vehicles.
Tighter Timelines and Conditions Everywhere
A number of other factors also changed. For the retained schemes, the period for importation of a vehicle was extended from two years to three years. Vehicles imported under these schemes will now be non-transferable for a full year after they are imported. The minimum stay-abroad was raised to three years, requiring applicants to have spent at least 850 cumulative days outside the country. One rule was narrowed in scope. The requirement that a vehicle be imported from the country where the sender currently resides applies only to the Transfer of Residence Scheme and not to the other schemes.
Ministry Says Changes Followed Stakeholder Consultations
These changes were made after consultations with the concerned stakeholders, said the commerce ministry. This included the Ministry of Overseas Pakistanis and the Human Resource Development. Officials said the aim was to keep facilitating genuine overseas Pakistanis who want to import vehicles for personal use while ensuring the benefits are availed only by legitimate applicants. The original objective of these schemes, the ministry said, was simple: to facilitate overseas Pakistanis in importing vehicles for their own use. But over time officials discovered abuse, particularly under the Personal Baggage Scheme, where imports were being diverted to commercial use.
The changes in the policy were carried out by SRO 61(I)/2026 dated 15th of January, 2026. The ministry said it was too early to assess the full impact on vehicle imports generally. But it said import figures could fall now that the Personal Baggage Scheme is no longer available and the remaining schemes have more stringent rules.
Finance Minister says No Duty-Free Imports anywhere
Finance Minister Muhammad Aurangzeb also replied to a related question in the Assembly. MNA Moin Aamer Pirzada asked whether there is any region in Pakistan where one can import vehicles duty- and tax-free. Aurangzeb clearly said that such a provision does not exist anywhere in the country. Cars and other vehicles cannot be imported without paying applicable duties and taxes, no matter where you are.
