Commerce Ministry Abolishes Personal Baggage Used Car Imports

The Ministry of Commerce has issued significant amendments to the Import Policy Order, 2022, via S.R.O. 61(I)/2026, effectively abolishing the “Personal Baggage” route for the importation of used vehicles and imposing stricter compliance conditions on imports under the “Gift” and “Transfer of Residence” schemes.

The “Personal Baggage” facility has been completely withdrawn, thereby eliminating one of the previously available channels for bringing used motor vehicles into Pakistan.

A new eligibility restriction has been introduced: any individual who has previously imported or received a vehicle as a gift must now observe a mandatory waiting period of 850 days before qualifying to import or gift another vehicle. This cooling-off period shall be computed from the date of filing of the goods declaration pertaining to the earlier consignment.

For imports under the “Transfer of Residence” scheme, a country-of-residence linkage has been mandated—vehicles must originate from the country in which the overseas Pakistani is lawfully residing at the time of import. This amendment precludes the sourcing of vehicles from third countries not aligned with the importer’s documented place of residence.

Both “Gift” and “Transfer of Residence” imports are now subject to a lock-in period: the imported vehicle may not be sold, transferred, or otherwise disposed of within one year from the date of clearance/ import. The restriction is intended to curb immediate commercial resale and speculative activity in the domestic market.

Furthermore, vehicles imported through these non-commercial schemes must now conform to the minimum safety, environmental, and regulatory compliance standards applicable to regular commercial imports. These detailed technical requirements will be separately notified by the Ministry of Industries and Production or the Engineering Development Board, as the case may be.

According to official sources, the amendments are designed to rationalise the used vehicle import regime, prevent abuse of concessional schemes, and ensure greater alignment with broader trade and fiscal policy objectives.

The changes follow the Federal Cabinet’s ratification (in January 2026) of the Economic Coordination Committee’s December 9, 2025 decision, which had permitted overseas Pakistanis to import used vehicles up to three years old under the Gift and Transfer of Residence schemes.