As a great relief to the expatriates, the Federal Cabinet of Pakistan has accepted the changes to the vehicle import policy, in which overseas Pakistanis can also import used cars that are not older than three years of age under certain schemes. The move is being widely welcomed by the expatriate community, especially the overseas Pakistani in Dubai, who frequently seek easier ways to relocate assets when returning home.
This ruling came at the counsel of the Economic Coordination Committee (ECC), which on December 9, 2025 after a comprehensive summary was presented before it by the ministry of commerce. The revised policy will leave only two schemes, such as Transfer of Residence and gift scheme, which are now in effect and other import options have been dropped.
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Revised Import Standards
As per one of the official statements of the Finance Division, vehicles that were imported under the accepted schemes should now meet commercial import safety and environmental standards in Pakistan. Among the most remarkable adjustments is the increase in the limit of the allowable vehicle age by two to three years, which will provide more flexibility to the overseas Pakistanis.
Nonetheless, the government has made it clear that imported cars will not be transferable one year after importation. This condition will seek to curb abuse and make sure that the facility will provide rewards to the true returnees and not commercial traders.
Legal Process Underway
It was reported that the decision approved by the cabinet will be sent by the Ministry of Commerce to the Ministry of Law and Justice to have the concerned Statutory Regulatory Order (SRO) vetted. After the approval, the SRO will be issued and given effective circulation on the official site of the ministry of commerce. Business Recorder also covered the growth, which further gave credence to the announcement.
Background of the Proposal
On October 24, 2025, the ECC was originally discussing the proposal, but requested the Ministry of Commerce to hold inter-ministerial consultations before making the final decision. Consequently, meetings were conducted with the Federal Board of Revenue (FBR), the Ministry of Industries and Production/Engineering Development Board (MoIP/EDB), Ministry of Finance and the Ministry of Overseas Pakistanis and Human Resource Development (MOPHRD).
Although the Ministry of Commerce and FBR had endorsed retention of the Transfer of Residence and Gift schemes, the MoIP/EDB had issues on misuse and influence on foreign exchange, and as such, insisted on dropping some of the schemes. However, MOPHRD also supported keeping these schemes as it is vital to their well-being of being authentic Pakistanis in foreign countries.
Existing Rules and Tax Structure
FBR regulations allow free importation of new vehicles as long as duties and taxes are paid. Pakistanis living abroad, even as dual nationals, are also allowed to import used cars under the approved schemes, as long as they are not prohibited by age.
Notably, there is no change in the current duty and tax system. Grants on hybrid cars are also still in place with Hybrid Electric Vehicles (HEVs) with an engine of up to 1,800cc and Hybrid Electric Vehicles (HEVs) between 1,800 and 2,500cc exemption at 50 and 25 per cent respectively.
This development is being seen as one of the most positive overseas Pakistani updates 2026, reflecting the government’s effort to balance regulation with expatriate welfare.
