ISLAMABAD: The federal government has amended the import policy for used vehicles, abolishing the personal baggage scheme amid rising inflows that were putting pressure on local automobile manufacturers.
The government has endorsed amendments approved by the Economic Coordination Committee (ECC) to the Import Policy Order (IPO) 2022. Following the approval, the Ministry of Commerce has issued a Statutory Regulatory Order (SRO) to formally notify the changes.
Under the revised policy, only the Transfer of Residence and Gift schemes will remain applicable for importing used vehicles, while the personal baggage scheme has been discontinued.
According to the new rules, imported vehicles will be non-transferable for one year, meaning they cannot be sold or transferred to another person during this period.
The government has also extended the permissible import period for vehicles from 700 days to 850 days.
The policy maintains that the maximum age of imported vehicles is capped at three years from the date of manufacture. Additionally, minimum safety and environmental standards will now be mandatory for all imported used vehicles.
Under the Transfer of Residence Scheme, vehicles must be imported from the same country where the overseas Pakistani is residing.
Earlier, the federal cabinet allowed overseas Pakistanis to import used cars that are up to three years old under two existing schemes by approving the decision of the 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.