Islamabad: The International Monetary Fund (IMF) has instructed Pakistan to reassess various schemes that allow the import of used vehicles for overseas Pakistanis. Acting on this guidance, the Ministry of Commerce is currently reviewing these import mechanisms and is expected to announce a decision soon.
According to reliable sources, the IMF expressed concerns that these schemes are susceptible to widespread misuse. The programs under scrutiny include the Gift Scheme, Personal Baggage Scheme, and Transfer of Residence Scheme—all of which permit Pakistanis living abroad to bring used vehicles into the country under certain conditions.
At present, these schemes allow overseas Pakistanis who have stayed abroad for periods ranging from 180 to 700 days to import used cars. However, the government is now considering extending this eligibility period to 850 days, a move that could broaden the scope of such imports.
The IMF’s concern stems from reports suggesting that these concessions are frequently exploited by commercial importers rather than genuine overseas Pakistanis, leading to revenue losses and distortions in the local automobile market.
Analysts believe that Pakistan’s automobile industry already struggles with issues such as high car prices, limited local production, and heavy reliance on imports. In this context, IMF’s call for scrutiny highlights the need for more transparent policies that balance the facilitation of overseas Pakistanis with safeguards against systemic abuse.
The Ministry of Commerce’s upcoming decision will likely determine whether Pakistan revises these schemes to tighten regulatory checks or proceeds with an extension of the current limits. Either way, the outcome could have significant implications for both overseas Pakistanis and the domestic auto sector.
