Govt Planning Major Change to Used Car Import Schemes

The government is considering combining the personal baggage and gift schemes for used imported cars, currently available for overseas Pakistanis, with the new five-year commercial import policy for used cars which is expected to start on October 1, 2025. Secretary Commerce Jawad Paul told the National Assembly Standing Committee on Commerce that five-year-old used cars will initially face an additional 40 percent duty, which is likely to decrease by 10 percent each year. “The government is thinking about merging the personal baggage and gift schemes for used imported cars, but the transfer of residence scheme will remain separate. No final decision has been made yet,” he said Committee members Usama Ahmed Mela and Gul Asghar Khan requested a detailed briefing on used car and electric vehicle imports, highlighting their possible impact on the country’s foreign exchange reserves. A delegation of used car importers, led by Hassan Danji, suggested that the Engineering Development Board (EDB) should not be involved in the commercial import process, since imports and exports fall under the Ministry of Commerce. They also asked for a reduction in the proposed 40 percent duty on five-year-old cars and recommended forming a working group with officials and importers to create a more attractive policy. However, Secretary Commerce clarified that auto sector issues fall under the Ministry of Industries, and his ministry already has a heavy workload. Standing Committee Chairman Jawed Hanif Khan agreed and decided to forward the matter, along with some recommendations, to the National Assembly Standing Committee on Industries and Production.