Pakistan has officially discontinued the Personal Baggage Scheme (PBS) for the importation of used vehicles. Commerce Minister Jam Kamal Khan confirmed the policy shift during a National Assembly session, responding to inquiries from Dr. Shazia Sobia regarding measures to prevent the commercial exploitation of import incentives.
The decision, which received backing from the federal cabinet and the Economic Coordination Committee, aims to ensure that vehicle import privileges are reserved exclusively for genuine personal use by overseas Pakistanis. Officials noted that while the schemes were originally designed to assist expatriates, the PBS had become a primary target for commercial misuse.
Revised Import Policy Requirements
- Stay-abroad requirement: Increased to three years, with a minimum of 850 cumulative days required for all schemes.
- Import frequency: The interval for bringing in vehicles has been extended from two years to three years.
- Transfer restrictions: Vehicles imported under the remaining Gift and Transfer of Residence schemes are now subject to a one-year non-transferable period.
- Regulatory standards: All vehicles must now comply with the same safety, environmental, and regulatory benchmarks mandated for commercial used-vehicle imports.
- Regional sourcing: The requirement that a vehicle must be imported from the country of the sender’s residence now applies exclusively to the Transfer of Residence Scheme.
The Ministry of Commerce stated that these adjustments were finalized following extensive consultations with relevant stakeholders, including the Ministry of Overseas Pakistanis and Human Resource Development. By tightening these conditions, the government intends to filter out non-bona fide beneficiaries while maintaining support for legitimate personal imports.
While the ministry noted it is currently premature to determine the full impact on national vehicle import volumes, officials acknowledged that the abolition of the PBS, combined with stricter oversight for the remaining Gift and Transfer of Residence schemes, is likely to result in a decline in overall imports.
Source: Gulf Today
