Good news: Overseas Pakistanis allowed to take cars to their country

Dubai: In a welcome move for overseas Pakistanis, the Federal Cabinet has approved changes to the vehicle import policy, allowing the import of used cars up to three years old under the Transfer of Residence and Gift schemes.

The decision ratifies recommendations made by the Economic Coordination Committee (ECC) on December 9, 2025, following a summary submitted by the Ministry of Commerce. Under the revised framework, only the Transfer of Residence and Gift schemes will be retained, while other options have been discontinued.

According to an official statement issued by the Finance Division, vehicles imported under these schemes will now be required to meet commercial import safety and environmental standards. The permissible intervening import period has also been extended from two years to three years. However, imported vehicles will remain non-transferable for one year after import.

Sources said the Ministry of Commerce will forward the cabinet-approved decision to the Ministry of Law and Justice for vetting of the relevant Statutory Regulatory Order (SRO). Once cleared, the SRO will be issued and uploaded on the Ministry of Commerce’s website, the Business Recorder reported.

The ECC had earlier reviewed the proposal on October 24, 2025, but directed the Ministry of Commerce to hold inter-ministerial consultations before resubmitting it. As a result, officials from the Federal Board of Revenue (FBR), Ministry of Industries and Production/Engineering Development Board (MoIP/EDB), Ministry of Finance, and the Ministry of Overseas Pakistanis and Human Resource Development (MOPHRD) were consulted.

During these discussions, differing views emerged. The Ministry of Commerce and the FBR supported retaining the Transfer of Residence and Gift schemes, while the MoIP/EDB recommended discontinuing the Gift and Personal Baggage schemes, citing misuse and foreign exchange concerns. The MOPHRD, however, argued for retaining all schemes, stressing their welfare importance for genuine overseas Pakistanis.

Under FBR rules, new vehicles can be imported freely into Pakistan upon payment of applicable duties and taxes. Overseas Pakistanis, including dual nationals, may import used vehicles under the Personal Baggage, Gift, and Transfer of Residence schemes, subject to age limits.

Motorcycles and scooters may only be imported under the Transfer of Residence scheme. Students receiving remittances from Pakistan, non-earning dependents, and individuals who have imported, gifted, or received a vehicle in the past two years are not eligible.

The existing duty and tax structure remains unchanged. Import incentives for hybrid vehicles also continue, with a 50 per cent duty and tax exemption for Hybrid Electric Vehicles (HEVs) up to 1,800cc, and a 25 per cent exemption for HEVs with engine capacity between 1,800cc and 2,500cc