New Guidelines 2026 -Overseas Pakistanis Allowed to Import Used Vehicles Under
The federal cabinet of Pakistan has recently approved a decision allowing overseas Pakistanis to import used vehicles up to three years old. This move comes after careful review by the Economic Coordination Committee (ECC) and aims to streamline vehicle import schemes while ensuring regulatory compliance.
Background of the Policy
Previously, several schemes allowed overseas Pakistanis to import vehicles, including Transfer of Residence, Gift, and Personal Baggage. However, misuse of some schemes and concerns about foreign exchange outflows prompted the government to revise the import policy.
- The cabinet ratified the ECC decision taken on December 9, 2025.
- Only two schemes — Transfer of Residence and Gift — will remain active.
- Vehicles imported must comply with safety and environmental standards.
The Ministry of Commerce submitted the proposal, which was later reviewed by other key ministries to ensure fair implementation.
Key Features of the Revised Vehicle Import Policy
| Feature | Details |
|---|---|
| Eligible Importers | Overseas Pakistanis |
| Maximum Vehicle Age | 3 years |
| Retained Schemes | Transfer of Residence, Gift |
| Non-Transferable Period | 1 year |
| Safety & Environmental Compliance | Mandatory for all imports |
| Government Departments Involved | FBR, MoIP/EDB, Finance, MOPHRD, Ministry of Commerce |
Objectives of the Policy
The revised framework is designed to achieve several objectives:
- Protect national interests by regulating vehicle imports.
- Ensure safety and environmental standards for all imported vehicles.
- Support genuine overseas Pakistanis by retaining practical schemes.
- Prevent misuse of schemes and reduce unnecessary foreign exchange outflows.
Decision-Making Process
The policy underwent a detailed review process:
- October 24, 2025: ECC initially considered the proposal and directed further inter-ministerial consultations.
- December 9, 2025: ECC finalized recommendations for cabinet approval.
- January 2026: Federal cabinet ratified the policy and forwarded it to the Ministry of Law and Justice for vetting the Statutory Regulatory Order (SRO).
Officials from FBR, MoIP/EDB, Finance, MOPHRD, and the Ministry of Commerce participated in discussions to ensure a balanced approach.
Ministries’ Positions on Vehicle Schemes
Transfer of Residence & Gift Schemes
- Supported by the Ministry of Commerce and FBR.
- Considered essential for overseas Pakistanis and aligned with regulatory compliance.
Personal Baggage Scheme
- MoIP/EDB proposed discontinuation due to misuse and economic concerns.
- MOPHRD argued for retention citing welfare benefits for genuine overseas Pakistanis.
The cabinet eventually decided to retain only Transfer of Residence and Gift schemes, striking a balance between regulation and convenience.
Important Conditions for Imported Vehicles
- Imported vehicles must meet commercial safety and environmental standards.
- Vehicles can only be transferred or sold after one year of import.
- Only vehicles up to three years old are eligible.
These conditions aim to protect consumers and the national economy while still providing benefits to overseas Pakistanis.
Next Steps for Implementation
- Law Ministry Vetting:
- The Statutory Regulatory Order (SRO) will be reviewed for legal compliance.
- Official Notification:
- Once vetted, the SRO will be published on the Ministry of Commerce website.
- Public Awareness:
- Overseas Pakistanis will be informed about the updated rules to ensure smooth adoption.
Benefits for Overseas Pakistanis
- Flexibility: Ability to import vehicles up to 3 years old.
- Simplification: Only two practical schemes retained.
- Protection: Safety and environmental standards ensure imported vehicles are roadworthy.
- Non-Transferable Rule: One-year restriction prevents speculation and misuse.
Challenges & Considerations
- Some ministries had concerns over foreign exchange outflows due to imported vehicles.
- Monitoring compliance with safety and environmental standards may require additional inspection protocols.
- Overseas Pakistanis must carefully follow rules to avoid penalties.
Conclusion
The federal cabinet’s approval represents a balanced approach to regulate vehicle imports for overseas Pakistanis. By retaining only Transfer of Residence and Gift schemes, the government ensures regulatory oversight, protects national economic interests, and continues to support genuine overseas Pakistanis. The new policy also emphasizes safety, environmental compliance, and fair usage, creating a framework that benefits both the government and expatriates.
