The government has abolished the “Personal Baggage” channel for used vehicle imports and imposed stricter conditions on the “Gift” and “Transfer of Residence” schemes under new amendments to the Import Policy Order, 2022.

According to S.R.O. 61(1)/2026 issued by the Ministry of Commerce, used cars can no longer enter Pakistan through the personal baggage route. The revised rules introduce an 850-day cooling period for individuals who have previously imported or gifted a vehicle, calculated from the date of the earlier goods declaration.

For the Transfer of Residence category, vehicles must now originate from the same country where the overseas Pakistani resides, eliminating the option of sourcing cars from third countries. Additionally, cars imported through Gift or Transfer of Residence routes will face a one-year bar on sale or transfer from the date of import, preventing immediate resale into the local market.

The amendments also extend environmental, regulatory and safety standards to these imports, aligning them with requirements imposed on commercial importers. Detailed criteria will be issued by the Ministry of Industries and Production or the Engineering Development Board.

Officials stated that the policy changes are intended to curb misuse and streamline used vehicle inflows. In January, the federal cabinet ratified an ECC decision from December 9, 2025, allowing overseas Pakistanis to import used vehicles up to three years old under two schemes.