The government is finalising comprehensive reforms aimed at preventing the misuse of car import schemes intended for overseas Pakistanis. Commerce Minister Jam Kamal Khan announced that the Ministry of Commerce is working on policy amendments to ensure that only genuine overseas Pakistanis benefit from these schemes, curbing commercial exploitation that has distorted the purpose of the facility.
The development was discussed in a high-level meeting held at the Ministry of Commerce, co-chaired by Commerce Minister Jam Kamal Khan and Special Assistant to the Prime Minister on Industries, Haroon Akhtar Khan. The session reviewed regulatory frameworks governing used car imports, the condition of the local automotive industry, and measures to protect both genuine beneficiaries and domestic manufacturers. Representatives from the Pakistan Automotive Manufacturers Association (PAMA), the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), and senior officials from the Ministry of Industries and FBR participated in the discussions.
Jam Kamal Khan shared that proposals are being finalised to amend the baggage, gift, and transfer of residence schemes to minimise commercial misuse. He confirmed that an additional 40% regulatory duty has already been imposed on commercial imports of used cars, which will gradually be reduced over the coming years. The minister noted that this approach would create a balanced incentive structure—protecting the local automotive industry while maintaining fair market conditions. The meeting also reviewed the possibility of standardising eligibility criteria across all import schemes to simplify regulations and ensure uniformity.
The minister further stated that quality assurance mechanisms are being reinforced through pre-shipment and post-shipment inspection systems developed by the Engineering Development Board (EDB). “By enforcing quality inspections and defining clear import rules, we aim to promote compliance and transparency while supporting Pakistan’s industrial growth,” he said, adding that stricter oversight will discourage the commercial misuse of overseas import schemes and curb illicit financial transactions such as hundi and hawala.
Special Assistant Haroon Akhtar Khan commended the industry’s active engagement and stressed the importance of close coordination between the commerce and industries divisions to build a sustainable and competitive automotive ecosystem. Industry representatives from PAMA and PAAPAM shared detailed suggestions on localisation, vendor development, tariff rationalisation, and incentives for research and development. Concluding the meeting, Jam Kamal Khan reaffirmed the government’s commitment to promoting transparency, partnership, and facilitation for both industry and overseas Pakistanis. “Our goal is not only to prevent misuse but to strengthen local manufacturing and enhance Pakistan’s global competitiveness,” he emphasised.
