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No More ‘Personal Baggage’ Cars: Cabinet Okays New Import Rules

Carr.pk
Carr.pk
2 min read
No More ‘Personal Baggage’ Cars: Cabinet Okays New Import Rules - Carr.pk

The Federal Cabinet has formally ratified the strict new vehicle import policy, previously proposed by the Economic Coordination Committee (ECC), to end the “Personal Baggage” used car import scheme and introduce tougher eligibility checks for overseas Pakistanis.

The ratification, which serves as the final seal of approval from the Prime Minister and his cabinet, aims to curb the rampant commercial misuse of facilities originally intended for the genuine expatriates.

The New Policy at a Glance

Under the new directives, the window for importing used cars has narrowed. The following changes are set to be implemented immediately upon the issuance of the official notification:

  • Baggage Scheme Abolished: The “Personal Baggage” scheme, frequently exploited by commercial dealers, has been discontinued. Overseas Pakistanis can now only utilize the Transfer of Residence (TR) and Gift schemes.
  • Three-Year Age Limit: The permissible age for imported vehicles is capped at 3 years from the date of manufacture.
  • Extended Stay Requirement: To qualify for the remaining schemes, an expatriate must now prove a stay abroad of three years, an increase from the previous two-year requirement.
  • One-Year Ban on Resale: Vehicles imported under these schemes cannot be sold or transferred for one year after arrival in Pakistan.
  • Origin Restriction: For the Transfer of Residence scheme, the vehicle must originate in the same country as the applicant’s residence, effectively closing the “third-country” import loophole.

Background Context: The December 9 Decision of ECC

These measures were first deliberated during the ECC meeting on December 9, 2025, presided over by Finance Minister Muhammad Aurangzeb.

The meeting highlighted how investor mafias were purchasing labourers’ passport data to import luxury SUVs and sedans in bulk, thereby bypassing commercial taxes. This practice, they argued, was haemorrhaging foreign exchange and damaging the local auto industry.

While the Ministry of Overseas Pakistanis advocated for retaining all three schemes to avoid hardship for workers, the cabinet ultimately opted for a compromise: retaining the TR and Gift schemes but attaching stringent conditions to filter out commercial profiteers.

What Happens Next? The SRO

The Cabinet’s ratification is complete, pending one final technicality before it becomes law, the SRO. An SRO (Statutory Regulatory Order) is an official legal notification issued by the federal government.

The Ministry of Commerce has forwarded the decision to the Ministry of Law for final vetting. Once the SRO is signed and uploaded to the ministry’s website, Customs authorities will immediately begin enforcing the new laws.

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