The International Monetary Fund (IMF) has called on Pakistan to review and tighten its used car import schemes for overseas Pakistanis, citing concerns over extensive misuse, sources told ProPakistani.
According to sources, the IMF has advised Pakistani authorities to strengthen the eligibility criteria for importing vehicles under 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 the country.
In the last fiscal year (2024–25), approximately 40,000 vehicles were imported under these schemes, raising concerns about potential abuse and loopholes.
The Ministry of Industries and Production is reportedly considering discontinuing all such schemes except the Transfer of Residence Scheme, especially after the government’s recent decision to lift restrictions on the commercial import of used vehicles.
However, the Ministry of Finance has proposed tightening the existing eligibility criteria rather than eliminating the schemes entirely, aiming to curb misuse. Meanwhile, the Ministry of Commerce is said to oppose scrapping the schemes altogether, citing their importance for overseas Pakistanis.
In line with IMF recommendations, the government is now revising the requirements for vehicle imports under these schemes. Under the Gift Scheme and Transfer of Residence Scheme, the minimum stay abroad requirement is likely to be increased from 700 days to 850 days within the past three years.
For the Personal Baggage Scheme, the minimum requirement is expected to remain unchanged at 180 days abroad within the last seven months before application.
There is reportedly a broad consensus among stakeholders that overseas Pakistanis should be allowed to import vehicles from any country, not just the country of their current residence.
It is also worth noting that Pakistan’s local automakers have been urging the government to review these schemes, claiming that the increased inflow of imported vehicles is reducing demand for locally assembled cars.
However, sources argue that despite these claims, the revenue of local automakers continues to grow each year, even as concerns over the quality and standards of locally assembled vehicles persist.
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Pakistan based assemblers (Toyota, Honda, Suzuki, ETC) start providing similar safety ETC standards compared to imported vehicles and we will start buying local assembled vehicles.
Can’t join group…. please make another one
Ne need to tighten the rules. Just make arrangements that once a car reached in Pak it must me automatically registered in the name of beneciary atleast for one year then see what happens.
It’s a favourable information for us.
Imported cars are the bench mark to what is sold internationally els we wouldn’t know airbags were also mandatory if we go a little back corolla didn’t had airbags , i dont understand if its really damaging local industry why they are not putting discounts on their cars why every year we see a hike in local manufacturers sales.
It seems they dont what competition they want to play alone how selfish or coward they are……
The quality and the standards of the vehicles assembled in Pakistan are not as high as the ones which are imported from Europe and Japan
Be sure quality of locally manufactured cars can not be improved by any scheme of allowing import of used cars. Set a standard, and ask the manufacturer to follow.