Used car scheme for expats: MoC seeks strict enforcement of non-transfer condition

ISLAMABAD: The Ministry of Commerce has sought strict enforcement of a one-year non-transfer condition on vehicles imported under used-car schemes for overseas Pakistanis, warning that misuse of these facilities for commercial vehicle trading could undermine the government’s policy safeguards.

In letters to Provincial Chief Secretaries, the Ministry of Commerce has requested the provincial government to ensure that vehicles imported under the Gift Scheme and Transfer of Residence Scheme are registered exclusively in the names of designated beneficiaries and are not transferred to any other person during the prescribed one-year restriction period.

The ministry has pointed out that the facilities under the Import Policy Order 2022 were introduced specifically to facilitate bona fide overseas Pakistanis by allowing them to import used vehicles for their personal use or gift them to eligible family members.

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However, these schemes were never intended to facilitate commercial trading in imported vehicles or provide a mechanism for vehicle traders to exploit the credentials and eligibility of overseas Pakistanis.

The government recently strengthened the policy framework governing the import of used vehicles under these schemes by introducing a specific condition prohibiting their transfer for one year.

Under the revised arrangement, vehicles imported under the Gift Scheme must be registered in the names of eligible family members designated as beneficiaries, whereas vehicles imported under the Transfer of Residence Scheme must be registered in the name of the overseas Pakistani concerned.

The ministry emphasised that vehicles cannot be transferred to any other person during the restricted period.

It further stated that effective implementation of the condition requires uniform application at the registration stage by provincial Excise, Taxation and Narcotics Control Departments.

The Ministry of Commerce observed that any variation in the manner in which such vehicles are registered or transferred to persons other than designated beneficiaries within the prescribed one-year period could undermine the safeguards introduced under the federal import policy framework and create opportunities for circumvention.

The matter was also considered by the National Assembly Standing Committee on Commerce in its meeting held on September 3, 2026.

The committee recommended that the Ministry of Commerce coordinate with the concerned provincial governments to ensure uniform compliance with SRO 61(1)/2026 regarding registration and transfer of vehicles.

In pursuance of the committee’s recommendation, the ministry requested the Balochistan government to direct the relevant provincial authorities to strictly implement the one-year non-transfer condition.

The ministry has specifically asked the provincial government to ensure that no vehicle imported under the overseas Pakistani schemes is transferred or registered in the name of any person other than the designated beneficiary during the restricted period.

The communication further underscores the need for coordination between federal and provincial authorities, as the import policy is governed by the federal government while vehicle registration and related administrative functions fall within the jurisdiction of provincial departments.

The Ministry of Commerce has sought priority attention to the matter, maintaining that strict enforcement is necessary to ensure that the facility remains exclusively available to genuine overseas Pakistanis rather than being converted into a channel for commercial vehicle trading.

Copyright Business Recorder, 2026