Pakistan Customs cleared more than 4,400 used vehicles in July under personal baggage, gift, and transfer-of-residence schemes, triggering alarm over possible money laundering and severe risks to the local auto industry.
The imports included over 600 high-value vehicles worth around Rs. 50 billion, with experts warning that schemes designed to facilitate overseas Pakistanis are being systematically exploited, according to a report in Business Recorder.
Official data shows 3,996 vehicles were imported under the Personal Baggage scheme, 331 under the Gift scheme, and 96 through Transfer of Residence. Surprisingly, many high-end luxury cars were declared by importers from impoverished regions of Khyber Pakhtunkhwa, raising red flags about misuse.
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Declared values for the vehicles ranged between 10,000 and 250,000 Japanese Yen (Rs. 19,000 to Rs. 4.7 million), suggesting under-invoicing of up to 99 percent. In one case, a 2020 Toyota Land Cruiser was declared at just Rs. 19,000.
Industry insiders argue that the actual costs are being settled through illegal foreign transactions, bypassing official banking channels.
Customs officials, however, insist that all clearances comply with existing laws, stressing that overseas Pakistani schemes carry no restrictions on the number of vehicles imported.
