Govt abolishes 'personal baggage' scheme, tightens vehicle import rules to curb misuse

Dawn reported that the government has scrapped the Personal Baggage Scheme for importing used vehicles, following approval from the Economic Coordination Committee and the federal cabinet. Commerce Minister Jam Kamal Khan confirmed the decision on Wednesday during a National Assembly Question Hour. The ministry argued that commercial misuse had been taking place under it, while the Gift and Transfer of Residence schemes stay in place with stricter conditions.

Vehicles brought in under the Gift and Transfer of Residence schemes must now meet baseline safety, environmental and compliance rules that apply to commercial used-vehicle imports. The interval between imports under these schemes now stretches from two years to three, and such vehicles cannot be transferred for one year. Overseas Pakistanis must now spend at least three years abroad, with a minimum of 850 cumulative days of stay, under every scheme. The rule requiring a car to come from the sender's country of residence now covers only the Transfer of Residence Scheme.

The commerce ministry said it is too early to judge the effect on overall vehicle imports, though volumes could fall after the abolition and tighter rules. Separately, Finance Minister Muhammad Aurangzeb told MNA Moin Aamer Pirzada in a written reply that no part of Pakistan permits cars or other vehicles to be imported without paying duties and taxes.