IMF Asks Pakistan to Tighten Used Car Import Schemes for Overseas Pakistanis

The International Monetary Fund (IMF) has called on Pakistan to review and tighten its used car import schemes for overseas Pakistanis, citing concerns over extensive misuse, sources told ProPakistani. According to sources, the IMF has advised Pakistani authorities to strengthen the eligibility criteria for importing vehicles under the Gift Scheme, Personal Baggage Scheme, and Transfer of Residence Scheme. These schemes currently allow overseas Pakistanis who have spent between 180 and 700 days abroad to import used vehicles into the country. In the last fiscal year (2024–25), approximately 40,000 vehicles were imported under these schemes, raising concerns about potential abuse and loopholes. The Ministry of Industries and Production is reportedly considering discontinuing all such schemes except the Transfer of Residence Scheme, especially after the government’s recent decision to lift restrictions on the commercial import of used vehicles. However, the Ministry of Finance has proposed tightening the existing eligibility criteria rather than eliminating the schemes entirely, aiming to curb misuse. Meanwhile, the Ministry of Commerce is said to oppose scrapping the schemes altogether, citing their importance for overseas Pakistanis. In line with IMF recommendations, the government is now revising the requirements for vehicle imports under these schemes. Under the Gift Scheme and Transfer of Residence Scheme, the minimum stay abroad requirement is likely to be increased from 700 days to 850 days within the past three years. For the Personal Baggage Scheme, the minimum requirement is expected to remain unchanged at 180 days abroad within the last seven months before application. There is reportedly a broad consensus among stakeholders that overseas Pakistanis should be allowed to import vehicles from any country, not just the country of their current residence. It is also worth noting that Pakistan’s local automakers have been urging the government to review these schemes, claiming that the increased inflow of imported vehicles is reducing demand for locally assembled cars. However, sources argue that despite these claims, the revenue of local automakers continues to grow each year, even as concerns over the quality and standards of locally assembled vehicles persist.