The federal government has plans to restrict the import of three-year-old used vehicles under the overseas Pakistani schemes to prevent misuse and reduce the use of hundi and hawala in payments, Business Recorder reported, citing official sources.
As per the report, the decision was taken during an inter-ministerial meeting chaired by Minister for Commerce Jam Kamal Khan and attended by Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, along with representatives from the Pakistan Automotive Manufacturers Association (PAMA) and the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM).
Officials said the restrictions will apply to the import of three-year-old used vehicles under the Personal Baggage, Transfer of Residence, and Gift Schemes outlined in the Import Policy Order 2022.
The revised procedure aims to ensure that only genuine overseas Pakistanis benefit from the facility, with imported cars required to be registered in the expatriate’s name at least six months before their return to Pakistan.
Sources revealed that while the Ministries of Overseas Pakistanis and Commerce supported a relatively flexible approach, the Ministry of Industries pushed for stricter enforcement, citing widespread misuse by commercial importers.
They said passports of overseas Pakistanis were often purchased for around Rs200,000 by traders who used their identities to import vehicles through informal money transfers and sell them domestically to buyers with undeclared wealth.
Representatives from PAAPAM warned that used car imports undermine demand for locally manufactured parts and harm domestic industry growth. They urged the government to discourage such inflows and support local assemblers and vendors instead.
Commerce Minister Jam Kamal Khan informed participants that the Economic Coordination Committee (ECC) had earlier directed the ministry to revise the conditions for vehicle imports and submit an updated proposal after consulting stakeholders. Once finalised, the revised summary will be resubmitted to the ECC for approval.
During the meeting, PAAPAM also voiced concerns about the upcoming Auto Industry Policy, noting that previous policies favoured new assemblers with limited local production while discouraging the vendor industry. The association called for higher tariff protection and policy continuity, as the current incentive structure expires in June 2026.
