The government is contemplating merging the personal baggage and gift schemes for used imported cars with the upcoming five-year used car commercial import policy, set to take effect from October 1, 2025, according to a news report.
Commerce Secretary Jawad Paul, addressing the National Assembly Standing Committee on Commerce, explained that this proposal is part of the government’s effort to streamline the import process for used cars. Under the new policy, five-year-old cars will face an additional 40% duty, which will be reduced by 10% each subsequent year.
Paul noted that while the personal baggage and gift schemes have been beneficial for overseas Pakistanis, the merging of these schemes with the new import policy is still under discussion, and no final decision has been made. The transfer of residence scheme will remain separate from this proposed merger.
Standing Committee members raised concerns about the impact of these measures on the country’s foreign exchange reserves and the automobile sector. The committee suggested that the government reduce the 40% duty on five-year-old cars to make the import policy more feasible.
A delegation of used car importers also recommended that the Engineering Development Board (EDB), which falls under the Ministry of Industries and Production, should not be involved in the commercial import process.Â
The importers urged that the Ministry of Commerce should handle the process since it oversees imports and exports. However, the Secretary of Commerce distanced himself from the proposal, noting that the auto sector falls under the Ministry of Industries.
Chairman of the Standing Committee, Jawed Hanif Khan, did not support the proposal and referred the matter, along with certain recommendations, to the National Assembly Standing Committee on Industries and Production for further discussion.
