The federal government has officially ended the widely used “Personal Baggage” scheme for importing used cars, introducing tougher rules for overseas Pakistanis under the Gift and Transfer of Residence (TR) schemes. The changes were announced through SRO 61(1)/2026, issued by the Ministry of Commerce on January 15, 2026, marking a major shift in Pakistan’s vehicle import policy.
With the latest amendments to the Import Policy Order 2022, the government has removed all references to the Personal Baggage scheme, effectively shutting the door on one of the most popular routes for bringing used vehicles into Pakistan. Officials say the move is aimed at closing loopholes, improving regulatory oversight, and ensuring higher safety and environmental standards for imported vehicles.
Under the revised rules, individuals who have already imported or gifted a vehicle must now observe an 850-day waiting period before importing another car. This period will be counted from the date the Goods Declaration of the previous vehicle was filed, tightening eligibility significantly.
For years, the Personal Baggage scheme had been criticized for misuse, with repeated imports and quick resales distorting the local auto market. Industry experts and regulators had raised concerns that the policy was being exploited to bypass commercial import rules, resulting in revenue losses and safety compromises. The new SRO appears to be a response to these long-standing concerns.
The Transfer of Residence scheme has also been narrowed. Vehicles must now be imported only from the country where the overseas Pakistani officially resides, ending the practice of sourcing cars from third countries. In addition, a one-year ban on selling or transferring imported vehicles has been imposed under both the Gift and TR schemes.
A senior official, speaking on condition of anonymity, said, “These changes are meant to regulate the used-car import sector, discourage speculative imports, and align personal imports with commercial safety and environmental requirements.”
Another major development is the application of commercial-level safety, environmental, and regulatory standards to vehicles imported under Gift and Transfer of Residence schemes. These standards will be notified by the Ministry of Industries and Production or the Engineering Development Board, bringing personal imports closer to formal industry benchmarks.
The abolition of the Personal Baggage scheme is expected to reduce the inflow of used imported cars in the short term, potentially stabilizing prices in the local market. For overseas Pakistanis, the new rules mean more planning, longer waiting periods, and stricter compliance before importing a vehicle.
