Pakistan tightens vehicle import rules for overseas Pakistanis

The government has issued new regulations requiring that used vehicles imported under Gift and Transfer of Residence schemes must now originate from the same country where the overseas Pakistani resides.

A move expected to significantly reduce imports of used cars and benefit local automobile manufacturers.

The Ministry of Commerce introduced these substantial changes effective January 5, 2026, marked a significant shift in Pakistan’s import policy with far-reaching implications for both the local automotive industry and overseas Pakistani communities.

The most significant change states that vehicles imported under the transfer of residence scheme must be from the same country where the overseas Pakistani resides.

This closes a loophole that previously allowed overseas Pakistanis to import cheaper used cars from markets like Japan, even when residing elsewhere.

The regulations extend the non-transferability period for vehicles from two years to three years or 850 days from importation.

The term “personal baggage” has been removed from all regulations, fundamentally changing how vehicle imports are classified, according to a notice of Ministry of Commerce posted by Suneel Sarfraz Munj on his X account.

Imported vehicles must now meet minimum safety and environmental standards applicable to commercial importation, as notified by the Ministry of Industries and Production.

These regulations will significantly reduce used car imports and benefit local manufacturers.

The local automotive industry has long faced competition from imported used vehicles that offer better value than locally assembled cars.

However, overseas Pakistanis now face limited vehicle options, potentially higher costs, stricter documentation requirements, and longer waiting periods before resale.