Govt drafts reforms to curb exploitation in overseas Pakistanis’ car import schemes

Commerce Minister Jam Kamal Khan said the government is working on amending used car import schemes to curb commercial misuse and ensure that only genuine overseas Pakistanis benefit from them.

The development came during a high-level meeting held at the Ministry of Commerce, co-chaired by Jam Kamal Khan and Special Assistant to the Prime Minister on Industries Haroon Akhtar Khan, to review policy measures for the automotive sector, regulation of used car imports, and facilitation for local manufacturers and genuine overseas Pakistanis.

The meeting was attended by delegations from the Pakistan Automotive Manufacturers Association (PAMA) and the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), along with senior officials of the Ministry of Commerce, Ministry of Industries & Production and FBR.

At the outset, the minister shared that the ministry is formulating proposals for amending the various schemes of importing used cars, where the possibility of commercial exploitation of the schemes will be minimised. It was ensured that the proposed steps would enhance authenticity and curb unauthorised use of overseas import schemes.

He further added that an additional 40% regulatory duty on commercial used car imports has been imposed, which will gradually reduce each year to provide a balanced incentive structure for the local automotive industry while ensuring fair market dynamics.

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The meeting also reviewed a proposal to harmonise the baggage, gift, and transfer of residence schemes. Officials briefed that under the current framework, eligibility for the baggage scheme requires a six-month stay abroad. It was proposed by the industry to standardise the eligibility period to the maximum period across all three schemes, simplifying the regulatory process and ensuring uniformity.

The minister highlighted that the main focus of the meeting was to review the automobile and auto-parts industry conditions after the opening of commercial import of used cars and to deliberate on the various schemes of import of vehicles by overseas Pakistanis while ensuring that genuine overseas Pakistanis are facilitated through transparent mechanisms.

Jam Kamal stated that by introducing pre-shipment and post-shipment inspection systems introduced by EDB and implementing strict quality control measures, the misuse of commercial import of used car would be effectively discouraged.

“By enforcing quality inspections and defining clear import rules, we aim to promote compliance and transparency while supporting Pakistan’s industrial growth,” he said.

He reaffirmed that the ministry’s priority is to facilitate local industry and manufacturers, helping the domestic sector become more competitive and self-sustaining.

SAPM Haroon Akhtar Khan appreciated the industry’s constructive engagement and emphasised the need for closer coordination between the commerce and industries divisions.

He noted that such collaborative consultations are essential for building a sustainable and competitive automotive ecosystem. He also encouraged both trade bodies to share the proposals urgently on the upcoming Automobile Policy, as the time is very short and the Ministry of Industries is working to finalise it by November.

During the discussions, PAAPAM and PAMA representatives presented detailed suggestions on localisation, vendor development, tariff rationalisation, and research and development incentives.

The federal minister directed the industry to submit comprehensive proposals for a long-term automotive policy that aligns with national industrial objectives.

Concluding the meeting, Jam Kamal Khan reaffirmed the government’s commitment to promoting facilitation, transparency, and partnership with the industry.

“Our goal is not only to control misuse in imports but also to strengthen local manufacturing and build Pakistan’s capacity for global competitiveness,” he added.