The federal government is contemplating imposing stringent restrictions on the sale of imported old vehicles in Pakistan for a period of up to three years, starting from the next fiscal year’s budget.
Prime Minister Shehbaz Sharif recently chaired a meeting where he directed the Federal Board of Revenue (FBR) to tackle the widespread misuse of personnel baggage schemes, transfer of residence, and gift schemes in the importation of old and used vehicles.
Sources familiar with the matter highlighted that these schemes are often exploited for the import of old vehicles, prompting the Prime Minister to instruct the member customs policy at FBR to ensure strict enforcement of the import policy regarding old and used vehicles.
A significant policy shift is anticipated, with proposals to restrict the local sale of imported old vehicles in Pakistan for a duration of three years. This move aims to curb the misuse of passports of overseas Pakistanis by commercial importers, who import vehicles under the guise of the baggage scheme only to sell them immediately in the local market.
According to existing regulations, overseas Pakistanis are eligible to import vehicles under the personnel baggage scheme, transfer of residence, and gift scheme, provided they have not imported, gifted, or received a vehicle within the last two years under the Import Policy Order (IPO) 2022.
The upcoming Finance Bill 2024 is expected to introduce amendments aimed at preventing the misuse of policies related to the import of old and used vehicles, sources added.
This initiative underscores the government’s commitment to ensuring transparency and fairness in vehicle imports, safeguarding the interests of both overseas Pakistanis and the local automotive industry.
