ISLAMABAD: The government is preparing to impose new restrictions on the import of three-year-old used vehicles by Overseas Pakistanis in order to curb misuse of the facility and block hundi and hawala transactions allegedly being used by importers, official sources.
The decision was taken at an inter-ministerial meeting held on Wednesday, chaired by Minister for Commerce Jam Kamal Khan. The meeting was attended by Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, as well as representatives from the Pakistan Automotive Manufacturers Association (PAMA) and the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM).
Earlier, the Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb, had reviewed a summary from the Commerce Division regarding proposed amendments to the import procedure under the Personal Baggage, Transfer of Residence, and Gift Schemes (Appendix-E) of the Import Policy Order 2022. The ECC had directed further consultations before final approval.
During Wednesday’s discussions, it was agreed that import schemes will be restricted strictly to genuine Overseas Pakistanis. Vehicles must be registered in the name of the expatriate at least six months before leaving their country of residence.
Sources disclosed that while the Ministries of Commerce and Overseas Pakistanis supported a more flexible approach, the Ministry of Industries opposed it, arguing that the schemes were being exploited by commercial importers. Reports indicate that some traders purchase expatriates’ passports for around Rs 200,000 and use them to pay for vehicles via hawala, which are later sold to buyers with undeclared money.
PAAPAM raised concerns that the influx of used cars negatively impacts local auto parts demand and urged stronger import curbs. Once stakeholder recommendations are finalised, a revised summary will be submitted to the ECC for approval.
