Pakistan allows overseas citizens to import used cars

ISLAMABAD: The federal cabinet of Pakistan has allowed overseas Pakistanis to import used cars that are up to three years old under two existing schemes by approving the decision of the Economic Coordination Committee (ECC) meeting held on December 9, 2025.

According to a statement issued by the Ministry of Finance following the ECCC meeting, the approval was granted on a summary presented by the Ministry of Commerce. Under the revised policy, the amendment in the import policy of vehicles was approved. Transfer of Residence and Gift schemes will remain in place.

Previously, only cars up to two years old could be imported; this limit has now been extended to three years. The policy also requires that imported vehicles will not be transferable for at least one year after import.

According to sources, the formal notification will be issued once the Ministry of Law approves the statutory regulatory order (SRO) in line with the cabinet’s decision, and it will be published on the Ministry of Commerce’s website.

It may be noted that earlier in the ECC meeting on 24 October, 2025, the summary was considered, and the Ministry of Commerce was directed to resubmit the proposal for a final decision after inter-ministerial consultation.

Following the inter-ministerial meeting was held involving representatives from the Federal Board of Revenue (FBR), the Ministry of Industries and Production, the Engineering Development Board (EDB), the Ministry of Finance, and the Ministry of Overseas Pakistanis and Human Resource Development.

In the meeting, discussions focused on which import schemes should be retained and the conditions under which they should operate.

The Ministry of Commerce and the FBR supported continuing the Transfer of Residence and Gift schemes, while the Ministry of Industries and Production and the EDB argued for scrapping the Gift and Personal Baggage schemes, citing widespread misuse of these facilities.