Stricter Rules Coming for Used Car Imports by Overseas Pakistanis

Pakistan's government wants to crack down on the import of three-year-old used vehicles. The aim? Stop misuse and cut off illegal money transfers like hundi and hawala. This move comes after a key meeting led by Commerce Minister Jam Kamal Khan. Officials and industry reps agreed on tighter controls for schemes meant for genuine expatriates.

What's Changing in the Import Rules?

Right now, Overseas Pakistanis can bring in used cars under Personal Baggage, Transfer of Residence, and Gift Schemes. But that's about to get stricter. The big change: The vehicle must be registered in the expatriate's name for at least six months before it arrives in Pakistan.

Why six months? It helps prove the car is truly theirs, not just a front for commercial deals. Authorities noticed a loophole where dealers borrow expatriate identities to import cars. Then, they sell them locally and handle payments off the books. These new rules aim to close that gap and ensure only real users benefit.

Why the Push for These Restrictions?

Misuse has been a growing problem. Many imports aren't for personal use—they're business tricks to dodge taxes and regulations. And that ties into bigger issues like illegal fund transfers. Hundi and hawala let money move without official channels, often skirting laws.

But it's not just about fraud. Local voices are speaking up too. Auto parts makers in Pakistan say cheap used imports hurt their business. They flood the market with affordable options, making it hard for homegrown manufacturers to compete. In the meeting, these groups pushed hard for limits on used cars to protect jobs and the economy here.

How This Affects Overseas Pakistanis and Buyers

If you're an expat planning to ship a car home, plan ahead. That six-month registration rule means no last-minute buys. Genuine users should be fine, but it weeds out the fakes. For buyers in Pakistan, fewer used imports might mean higher prices on second-hand cars. But it could boost local assembly and parts production over time.

And that's the trade-off: Short-term pain for long-term gains in fairness and industry growth.

What's Next for the Policy?

The Commerce Ministry is wrapping up the details now. Once ready, they'll send it to the Economic Coordination Committee (ECC) for a final nod. If approved, these changes could roll out soon. Keep an eye on official updates if you're affected—better to stay informed than caught off guard.

This shift shows the government's focus on cleaning up trade practices. It might not thrill everyone, but it aims to make things fairer for all.