Major Policy Shift for Overseas Pakistanis Importing Cars from October 2025

The Government of Pakistan is preparing a significant change in its auto import policy, set to take effect from October 1, 2025. According to Business Recorder, the widely used Baggage and Gift schemes—which allow overseas Pakistanis to bring or send cars to Pakistan under special duty relaxations—may soon be merged into a new five-year commercial import policy.

What’s Changing?

Currently, overseas Pakistanis benefit from two schemes:

• Baggage Scheme: Allows returning expatriates to bring a used car home under certain conditions.
• Gift Scheme: Permits overseas Pakistanis to send a used car to family members in Pakistan.

These programs were originally designed to support the diaspora and their families, while offering some relief on taxes and duties. However, under the new plan, both may be integrated into a broader commercial import framework, while the Transfer of Residence scheme (for those permanently relocating) is expected to remain separate.

New Duty Structure on Used Cars

A major change will be the introduction of a sliding scale of additional duties on used car imports. The new structure is as follows:

This phased reduction is designed to protect local manufacturers initially, while gradually opening the market to more imported vehicles.

Concerns Raised by Lawmakers

During a meeting of the National Assembly’s Standing Committee on Commerce, Secretary of Commerce Jawad Paul explained the proposal. However, lawmakers including Usama Ahmed Mela and Gul Asghar Khan highlighted several risks:

• Foreign Exchange Pressure: A surge in car imports could put further strain on Pakistan’s reserves.
• Impact on Local Industry: Local car manufacturers may face stiffer competition, potentially harming domestic production.
• EV Policy Uncertainty: The treatment of electric vehicles (EVs) under the new framework remains unclear, raising questions about Pakistan’s ability to adapt to the global shift toward sustainable transport.

What It Means for Overseas Pakistanis?

If finalized, this policy would represent the most significant shift in car import rules in years. While the phased duty reduction offers a long-term incentive, in the short term, higher additional taxes (up to 40%) could make importing used cars less attractive.

The government’s final decision is still pending, but one thing is clear: change is on the horizon for overseas Pakistanis planning to import vehicles into the country.

Disclaimer:
The information provided in this article is based on reports and discussions from government and media sources, including Business Recorder. The proposed car import policy for overseas Pakistanis is still under consideration and subject to change. Final details, implementation, and official notifications may differ from what is outlined above. Readers are advised to consult official government announcements or relevant authorities before making any financial or legal decisions regarding car imports.

Afsheen Gohar

Afsheen Gohar is a seasoned writer with a wealth of experience in crafting authentic and well-researched articles. Her dedication to delivering high-quality content is evident in her work, where she combines a passion for storytelling with a commitment to accuracy and depth. Afsheen’s writing reflects her ability to engage readers with compelling narratives while providing valuable insights on a diverse range of topics.