Govt Set to Restrict 3-Year-Old Car Imports

The government is preparing to impose stricter restrictions on the import of three-year-old used vehicles by Overseas Pakistanis, aiming to curb abuse of the facility and crack down on illegal hundi and hawala transactions. The move was discussed at an inter-ministerial meeting on Wednesday, chaired by Commerce Minister Jam Kamal Khan and attended by senior government officials, as well as representatives from the Pakistan Automotive Manufacturers Association (PAMA) and the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM). The Economic Coordination Committee (ECC) had previously directed the Commerce Division to consult stakeholders and revise its proposal to amend vehicle import procedures under the Personal Baggage, Transfer of Residence, and Gift Schemes outlined in the Import Policy Order 2022. According to a report by Business Recorder, the latest meeting agreed to tighten these schemes, restricting eligibility to genuine Overseas Pakistanis. Under the proposed changes, imported vehicles must be registered in the name of the expatriate for at least six months before they depart from their country of residence. While the Ministries of Overseas Pakistanis and Commerce advocated a more lenient approach, the Ministry of Industries pushed for stricter controls, citing widespread abuse by commercial importers using expatriate identities. Officials noted that some traders purchase passports of Overseas Pakistanis for around Rs. 200,000 to facilitate vehicle imports through informal payment channels, with the cars ultimately sold to buyers with undeclared funds. PAAPAM raised concerns that the import of used cars is hurting demand for locally manufactured auto parts and urged the government to discourage the influx of used vehicles. The association also called for a more balanced Auto Industry Policy, warning that previous policies favored new assemblers over local parts manufacturers. The Commerce Ministry is now working to revise its recommendations, which will be submitted to the ECC for final approval once consultations are complete.