Pakistan’s Used Car Import Rules Have Changed and Not Everyone Is Happy About It

If you’ve ever tried to understand Pakistan’s used car import rules, you know they were never simple. Over the years, different schemes existed side by side, and people learned how to work around them. That system has now been tightened, and in some cases, shut down completely.

The biggest change is straightforward but significant. The government has ended the personal baggage route for importing used cars. This option had been around for a long time and, in reality, it became the most common way used vehicles entered the country. From now on, that door is closed.

At the moment, only two ways remain to import a used car: through the Transfer of Residence scheme or the Gift scheme. There is no third category anymore, and no flexibility outside these two.

Along with removing the personal baggage option, the government has also made it harder to import cars frequently. Anyone who has already imported or gifted a vehicle must now wait 850 days before becoming eligible again. Earlier, this waiting period was shorter. The new timeline clearly slows things down for repeat imports.

Another change affects where the car comes from. Under the Transfer of Residence scheme, vehicles must now be imported from the same country where the overseas Pakistani is actually living. In the past, people often sourced cars from other countries, especially Japan, even if they were residing elsewhere. That practice is no longer allowed.

There is also a one-year restriction on selling. Cars imported under both the Gift and Transfer of Residence schemes cannot be sold or transferred for at least twelve months after import. This rule appears to be aimed directly at people who brought in cars mainly to sell them quickly in the local market.

On top of all this, the government has decided that safety and environmental standards will apply to these imports as well. These are similar to the standards already required for commercial used-car imports, and detailed guidelines will be issued separately.

Officials say the intention is to reduce misuse and make sure these schemes benefit genuine overseas Pakistanis rather than traders. Industry groups, however, are worried. In recent years, tens of thousands of used cars entered Pakistan annually, generating substantial revenue in duties and taxes. With tighter rules, that volume is expected to fall.

Whether this helps the local auto industry or simply reduces consumer choice remains to be seen. What is certain is that importing a used car into Pakistan is no longer a casual decision. It now requires long-term planning, clear residency status, and patience.

For many buyers, this marks the end of an era and the beginning of a much more controlled market.