The International Monetary Fund (IMF) has placed Pakistan’s used car import schemes for overseas Pakistanis under scrutiny, advising the government to tighten eligibility criteria and address loopholes that may be allowing misuse.
According to officials, the IMF has recommended a detailed review of the Gift Scheme, Personal Baggage Scheme, and Transfer of Residence Scheme. These schemes currently allow overseas Pakistanis who have spent between 180 and 700 days abroad to import used vehicles into Pakistan.
During the last fiscal year (2024–25), around 40,000 cars were imported under these schemes, raising concerns over potential abuse. In response, the Ministry of Industries and Production is reportedly considering discontinuing all such schemes except the Transfer of Residence Scheme. The move follows the government’s recent decision to lift restrictions on the commercial import of used vehicles.
However, the Ministry of Finance has proposed tightening the criteria rather than abolishing the schemes altogether to minimize misuse. Meanwhile, the Ministry of Commerce opposes ending these initiatives, emphasizing their importance for overseas Pakistanis.
Govt Revising Eligibility Rules for Used Car Import Schemes
In line with IMF recommendations, the government is working to revise eligibility conditions for vehicle imports. The minimum stay abroad under the Gift Scheme and Transfer of Residence Scheme is likely to be increased from 700 to 850 days within the past three years. For the Personal Baggage Scheme, the current requirement of 180 days abroad within the last seven months is expected to remain unchanged.
Stakeholders have also agreed that overseas Pakistanis should be allowed to import vehicles from any country rather than being limited to their current country of residence.
Local automakers have been urging the government to revisit these import schemes, claiming that the surge in used car imports is reducing demand for locally assembled vehicles. However, industry sources argue that local manufacturers’ revenues continue to grow annually despite concerns over the quality and standards of domestically produced cars.