The federal cabinet of Pakistan has approved the Economic Coordination Committee’s (ECC) December 2025, decision allowing overseas Pakistanis to import used vehicles up to three years old through two designated schemes.
The move comes after the Ministry of Commerce submitted a summary recommending changes to the current vehicle import policy while retaining the Transfer of Residence and Gift schemes.
Officials stated that the cabinet preserved these two schemes while updating the vehicle import policy to meet safety and environmental requirements. The allowed vehicle age has been raised from two to three years, with a restriction preventing the transfer of these vehicles for one year.
Following the cabinet’s approval, the Ministry of Commerce will forward the proposal to the Law Ministry for review of the relevant Statutory Regulatory Order (SRO). Once cleared, the SRO will be published on the ministry’s website.
In October 2025, the ECC directed the Ministry of Commerce to carry out inter-ministerial consultations before resubmitting the proposal. Subsequently, an inter-ministerial meeting took place, involving officials from several ministries, including the Federal Board of Revenue (FBR), the Ministry of Industries and Production (MoIP), the Engineering Development Board (EDB), the Ministry of Finance, and the Ministry of Overseas Pakistanis.
The discussions centered on which vehicle import schemes to retain and their associated conditions. While the Ministry of Commerce and FBR advocated keeping the Transfer of Residence and Gift schemes, the MoIP and EDB suggested phasing out the Gift and Personal Baggage schemes due to concerns over misuse and foreign exchange implications.
However, the Ministry of Overseas Pakistanis supported keeping all three schemes, highlighting their importance for expatriate welfare.
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