Used Car Import Rules in Pakistan Have Changed: New Update

Pakistan’s automotive import landscape has entered a decisive new phase. The government has significantly revised the used car import rules in Pakistan, ending long-standing practices and tightening eligibility, documentation, and usage conditions.These changes now directly affect overseas Pakistanis, local buyers, dealers, and the wider auto market.

We present this comprehensive guide to explain what has changed, why it matters, and how these rules now work in practice. Our goal is to help readers make informed, compliant, and financially sound decisions, while avoiding costly mistakes. This article fully answers both visible and hidden questions about import procedures, eligibility requirements, restrictions, timelines, and market impact.

Overview of the Used Car Import Rules in Pakistan

The used car import rules in Pakistan are now simpler in structure but stricter in execution. Previously, multiple parallel routes existed, allowing flexibility and, in many cases, misuse. The government has now narrowed the system to two clearly defined schemes.

At present, used cars can only be imported through:

• Transfer of Residence (TR) Scheme
• Gift Scheme

The Personal Baggage Scheme has been completely abolished. There are no exceptions, alternate categories, or transitional relaxations beyond these two routes.

This shift reflects a clear policy direction. The policy limits imports to genuine personal use by overseas Pakistanis and prevents frequent trading or speculative resale.

Abolition of the Personal Baggage Scheme

One of the most impactful changes within the used car import rules in Pakistan is the complete removal of the Personal Baggage route.

Why This Matters

For years, the Personal Baggage Scheme served as the most widely used import method. Although authorities originally designed it for returning travelers, importers gradually turned it into the preferred channel for commercial-style imports. Importers often brought in vehicles, sold them quickly, and replaced them with new consignments.

By closing this route, the government has:

• Eliminated the easiest path for frequent imports
• Reduced grey-market activity
• Increased traceability and accountability

This single decision has reshaped the used car supply pipeline almost overnight.

Transfer of Residence Scheme Explained

The Transfer of Residence Scheme remains available but under stricter conditions. Under the updated used car import rules in Pakistan, this scheme is now tightly aligned with genuine overseas residency.

Key Eligibility Requirements

To qualify under Transfer of Residence, applicants must:

• Be a Pakistani national residing abroad
• Have lived continuously in the foreign country for a defined minimum period
• Import the vehicle from the same country of residence
• Provide verifiable proof of stay and employment

Sourcing a car from a third country is no longer allowed. For example, a resident of the UAE cannot import a vehicle purchased from Japan under this scheme.

Purpose of This Restriction

This change directly addresses past practices where vehicles were sourced from markets known for cheaper used cars, regardless of residency. The new rule ensures:

• Consistency between residency and import origin
• Reduced arbitrage opportunities
• Better enforcement of scheme intent

Gift Scheme: Conditions and Limitations

The Gift Scheme remains an option under the used car import rules in Pakistan, but it is also subject to stricter controls.

Who Can Use the Gift Scheme

Under this scheme:

• An overseas Pakistani can gift a vehicle to a close family member in Pakistan
• The relationship must fall within permitted categories
• All documentation must clearly establish donor identity and eligibility

Important Restrictions

Vehicles imported under the Gift Scheme:

• Cannot be sold or transferred for 12 months
• Count toward the donor’s import history
• Trigger the same waiting period as other schemes

This ensures the Gift Scheme is not used as a substitute for commercial imports.

Mandatory 850-Day Waiting Period Between Imports

A major policy tightening within the used car import rules in Pakistan is the introduction of an 850-day cooling-off period.

What This Means

Anyone who has imported or gifted a car must now wait:

• Approximately 2 years and 4 months
• Before becoming eligible to import or gift another vehicle

Previously, this period was shorter and easier to navigate. The extended timeline significantly reduces repeat imports.

Policy Objective

The waiting period aims to:

• Discourage frequent vehicle flipping
• Prioritize first-time and genuine users
• Reduce pressure on foreign exchange reserves

For many overseas Pakistanis, this turns vehicle import into a one-time or long-term decision.

One-Year Non-Transfer and Non-Sale Restriction

Under the revised used car import rules in Pakistan, all imported vehicles are locked from sale or transfer for a full year.

Scope of the Restriction

This applies equally to:

• Transfer of Residence imports
• Gift Scheme imports

During this 12-month period:

• Ownership cannot change
• Registration cannot be transferred
• Informal agreements hold no legal standing

Why This Rule Exists

This condition directly targets speculative imports. It ensures imported vehicles are used personally and not immediately injected into the resale market.

Safety and Environmental Compliance Requirements

Another critical development within the used car import rules in Pakistan is the application of formal safety and environmental standards.

What to Expect

Imported vehicles must now:

• Meet defined emission benchmarks
• Comply with road safety standards
• Pass inspection protocols similar to commercial imports

Detailed technical guidelines are issued separately, but the intent is clear. Imported vehicles should align with national environmental and safety goals.

Long-Term Implications

This change may:

• Reduce imports of older, high-emission vehicles
• Improve overall vehicle quality
• Increase compliance costs

While this raises entry barriers, it supports sustainability and public safety.

Financial Impact: Duties, Taxes, and Costs

Understanding costs is essential when evaluating the used car import rules in Pakistan.

Common Cost Components

Importing a used car involves:

• Customs duty
• Regulatory duty
• Sales tax
• Income tax
• Port and clearing charges

Rates vary by:

• Engine capacity
• Vehicle age
• Import scheme

Stricter rules may reduce volume, but per-unit compliance costs remain substantial.

Impact on the Local Auto Market

The revised used car import rules in Pakistan have wide-ranging market effects.

Expected Market Changes

We anticipate:

• Lower volume of imported used cars
• Reduced competition for locally assembled models
• Potential price stability for new vehicles

However, consumers may face:

• Fewer imported options
• Higher prices for compliant used cars
• Longer waiting periods

Whether local manufacturers improve quality and affordability remains a key question.

Practical Guidance for Overseas Pakistanis

For those considering imports under the used car import rules in Pakistan, careful planning is essential.

Key Planning Tips

We recommend:

• Verifying eligibility before purchase
• Matching vehicle origin with residency
• Calculating total landed cost realistically
• Preparing complete documentation early

Common Mistakes to Avoid

Avoid:

• Assuming old rules still apply
• Importing through unofficial intermediaries
• Overlooking sale and waiting restrictions

Errors can lead to delays, penalties, or outright rejection.

Also read: Govt Announces New Tax on Used Car Imports in Pakistan

Frequently Asked Questions

Can we still import cars from Japan?

Only if the importer is residing in Japan and qualifies under Transfer of Residence.

Can imported cars be sold after one year?

Yes, but only after completing the mandatory 12-month holding period.

Is there any exception to the 850-day rule?

No general exceptions exist under the current used car import rules in Pakistan.

Conclusion: A More Controlled Import Environment

The revised used car import rules in Pakistan clearly signal a shift toward control, transparency, and long-term planning. The era of casual, frequent, and speculative imports has ended. What remains is a framework focused on genuine overseas Pakistanis, personal use, and regulatory compliance.

While these changes may reduce consumer choice in the short term, they aim to stabilize the market, protect foreign exchange, and encourage responsible imports. For anyone considering importing a used car, informed preparation is no longer optional. It is essential.

By understanding these rules in depth, we can navigate the system confidently, legally, and efficiently in this new automotive landscape.

Also read: Important Documents To Check Before Buying A Car In Pakistan