The federal cabinet has approved a policy change allowing overseas Pakistanis to import used cars that are up to three years old. The decision endorses the recommendations of the Economic Coordination Committee from its meeting on December 9, 2025.
According to a statement from the Ministry of Finance, the cabinet approved a summary presented by the Ministry of Commerce. The move amends Pakistan’s vehicle import policy while keeping the existing Transfer of Residence and Gift schemes intact.
Under the revised rules, the age limit for importing used vehicles has been extended from two years to three years. The policy also imposes a restriction: imported vehicles may not be sold or transferred for at least one year after arrival in Pakistan.
Officials said a formal notification will follow once the Ministry of Law and Justice approves the required statutory regulatory order (SRO). The notification will then be published on the Ministry of Commerce’s official website.
The proposal was first reviewed at an ECC meeting on October 24, 2025. At that stage, the committee asked the Ministry of Commerce to conduct inter-ministerial consultations. They needed to do this before resubmitting the plan for final approval.
Read: ECC Bans Used Car Imports Under Baggage Scheme
Following those directions, an inter-ministerial meeting took place. Representatives from the Federal Board of Revenue, the Ministry of Industries and Production, the Engineering Development Board, the Ministry of Finance, and the Ministry of Overseas Pakistanis and Human Resource Development attended.
During the discussions, officials debated which vehicle import schemes should continue and under what conditions. The Ministry of Commerce and the FBR supported retaining the Transfer of Residence and Gift schemes. In contrast, the Ministry of Industries and Production and the Engineering Development Board raised concerns about alleged misuse. Therefore, they called for the scrapping of the Gift and Personal Baggage schemes.
The cabinet’s decision reflects a balance between facilitating overseas Pakistanis and addressing regulatory concerns. Officials say the updated policy aims to provide relief to expatriates while maintaining safeguards against abuse.
Once the notification is issued, overseas Pakistanis will be able to take advantage of the relaxed age limit. This move is expected to increase legal vehicle imports and offer greater choice in the local market.
