ISLAMABAD: The Pakistani federal cabinet has approved a new policy allowing overseas Pakistanis to import used vehicles that are up to three years old. This decision was based on the recommendations of the Economic Coordination Committee (ECC) during its meeting held on December 9, 2025.
A statement released by the Ministry of Finance after the ECC meeting explained that the approval was granted on a proposal submitted by the Ministry of Commerce. The revised import policy amendments now permit a longer age limit for used cars, which was previously capped at two years. Additionally, imported vehicles will be subject to a one-year non-transferability clause.
The policy continues to uphold existing schemes such as Transfer of Residence and Gift, which will remain operational. Once the Ministry of Law approves the statutory regulatory order (SRO) aligned with the cabinet’s decision, the formal notification will be issued and published on the Ministry of Commerce’s website.
Sources indicate that the proposal was initially discussed during the ECC meeting on October 24, 2025, where the Ministry of Commerce was asked to revisit and resubmit the plan after thorough inter-ministerial consultations.
An inter-ministerial meeting involving representatives from the Federal Board of Revenue (FBR), Ministry of Industries and Production, Engineering Development Board (EDB), Ministry of Finance, and Ministry of Overseas Pakistanis and Human Resource Development was convened to review the details.
During this session, discussions centered on which import schemes should be continued and the conditions for their operation. While the Ministry of Commerce and FBR advocated for maintaining the Transfer of Residence and Gift schemes, the Ministry of Industries and EDB argued for discontinuing the Gift and Personal Baggage schemes due to concerns over abuse and misuse of these facilities.
