The federal government has approved significant changes to the vehicle import policy, banning the import of cars under the personal baggage scheme and tightening regulations for overseas Pakistanis.

Under the revised framework, vehicles may now only be imported through the Transfer of Residence and Gift schemes, following amendments approved in the Import Policy Order 2022.

According to a notification issued by the Ministry of Commerce, the personal baggage route for importing vehicles from abroad has been completely withdrawn as part of the updated policy.

Under the new rules, imported vehicles cannot be transferred or sold for at least one year after customs clearance. This measure is intended to discourage the commercial misuse of concessionary import schemes.

The government has also extended the allowable period for importing vehicles, increasing the timeframe from 700 days to 850 days, thereby providing additional flexibility to eligible overseas Pakistanis.

In another key amendment, compliance with minimum safety and environmental standards has been made mandatory for the import of used vehicles, aligning the policy with road safety and environmental objectives.

The notification further states that vehicles imported under the Transfer of Residence scheme must originate from the same country in which the overseas Pakistani has been residing. This change tightens eligibility criteria and seeks to prevent misuse.

Officials stated that the amendments are intended to regulate vehicle imports more effectively, curb speculative activity, and ensure improved compliance with safety, environmental, and residency requirements.

The revised policy has come into effect following the issuance of the formal notification by the Ministry of Commerce.