Federal government has officially terminated the widely used Personal Baggage scheme for importing used vehicles, marking a major change in Pakistan’s car import policy. The move, announced through SRO 61(1)/2026 issued by Ministry of Commerce on January 15, 2026, replaces longstanding practices with stricter compliance requirements for overseas Pakistanis under Gift and Transfer of Residence schemes. Authorities have framed the decision as a step to close loopholes, strengthen regulatory oversight, and ensure adherence to safety and environmental standards.
Under the revised Import Policy Order 2022, all references to the Personal Baggage scheme have been removed, effectively ending one of the most popular avenues for bringing pre-owned cars into the country. Individuals who have already imported or gifted a vehicle must now observe an 850-day waiting period before applying to import another car. The waiting period is calculated from the Goods Declaration filing date of the previously imported vehicle, representing a significant tightening of eligibility criteria. Officials say this change aims to curb speculative imports and align personal imports with broader commercial and safety standards.
For years, the Personal Baggage scheme faced criticism from regulators and industry experts. Repeated imports followed by quick resales were seen as distorting local auto markets while creating potential safety and environmental concerns. The new SRO also narrows the Transfer of Residence scheme by requiring vehicles to be imported from the country where the overseas Pakistani officially resides, ending the practice of sourcing vehicles from third countries. A one-year restriction on selling or transferring imported cars has been introduced for both Gift and TR schemes, further limiting short-term resale opportunities.
Authorities have also emphasized that vehicles imported under the updated rules will be subject to commercial-level safety, environmental, and regulatory standards. These benchmarks will be specified by Ministry of Industries and Production or Engineering Development Board, bringing personal imports closer to formal industry norms. A senior official, speaking on condition of anonymity, stated that the policy changes are intended to stabilize local car markets, regulate the used-car import sector, and ensure compliance with industry requirements.
Industry analysts suggest that the abolition of the Personal Baggage scheme will likely reduce the short-term influx of used vehicles, potentially easing pressure on local pricing and market dynamics. For overseas Pakistanis, the new rules mean longer planning cycles, stricter adherence to regulations, and more structured compliance processes before importing vehicles. The overall initiative signals the government’s focus on safeguarding market stability, improving regulatory enforcement, and aligning imported vehicles with safety and environmental standards.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
