Syed Saif Ul Hassan 
Oct 06, 2025
Pakistan's recent opening of used car imports for overseas Pakistanis appeared to be a welcoming move for both overseas nationals and the country's struggling economy, but it seems to have landed in hot water as the International Monetary Fund (IMF) has sought to tighten eligibility and resolve loopholes.
The Fund urged the government to make cautious strides pertaining to its used car import schemes for overseas Pakistanis, as these schemes allow overseas Pakistanis who have lived abroad for 180 to 700 days to bring used vehicles back home.
The used car imports initiative also includes the Gift Scheme, Personal Baggage Scheme, and Transfer of Residence Scheme.
Last fiscal year, about 40,000 cars were imported under these schemes, raising concerns about possible misuse. In response, the Ministry of Industries and Production is considering ending all schemes except the Transfer of Residence Scheme, as reported by TechJuice.
The development comes on the heels of the government's recent decision to lift restrictions on commercial imports of used cars.
However, the Ministry of Finance suggested tightening the criteria instead of scrapping the programs entirely to curb abuse.
To come on par with the IMF's conditions, the government is also planning to revise eligibility requirements, and as a result, the minimum stay abroad is anticipated to be increased from 700 to 850 days for the Gift and Transfer of Residence Schemes. The 180-day requirement for the Personal Baggage Scheme is expected to remain unchanged.
While some stakeholders agree that overseas Pakistanis should be allowed to import vehicles from any country, not just their current residence, local automakers are pushing for a review of these schemes, arguing that the influx of used cars into Pakistan is affecting locally assembled vehicles' demand.
