The federal government is preparing to tighten regulations on the import of three-year-old used vehicles under schemes meant for Overseas Pakistanis, amid concerns that these facilities are being misused and linked to hundi and hawala transactions.
The decision emerged during an inter-ministerial meeting held on Wednesday, chaired by Minister for Commerce Jam Kamal Khan, and attended by Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, alongside representatives from the Pakistan Automotive Manufacturers Association (PAMA) and the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM).
Earlier, the Economic Coordination Committee (ECC), led by Finance Minister Muhammad Aurangzeb, had reviewed a proposal from the Commerce Division seeking amendments to vehicle import procedures under the Personal Baggage, Transfer of Residence, and Gift Schemes (Appendix-E) of the Import Policy Order 2022. The ECC had directed further stakeholder consultations before submitting a revised plan.
In Wednesday’s meeting, it was agreed that these schemes would be strictly limited to genuine Overseas Pakistanis. Under the proposed changes, a vehicle must remain registered in the name of the expatriate for at least six months before their departure from the country where they reside.
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While the Ministry of Overseas Pakistanis and the Ministry of Commerce supported a relatively flexible framework, the Ministry of Industries opposed the current leniency, arguing that commercial importers have been exploiting the schemes in the name of expatriates.
Once final recommendations are agreed upon, the Commerce Division will submit a revised summary to the ECC for approval.
