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IMF Pressures Pakistan to Review Used Car Import Schemes for Overseas Pakistanis
IMF urges Pakistan to review used vehicle import schemes amid misuse concerns. Govt weighs stricter criteria or limiting schemes, as local auto industry pushes for ban.
MH
by Muhammad Hashir
2025-10-04
IMF Pressures Pakistan to Review Used Car Import Schemes for Overseas Pakistanis

The International Monetary Fund (IMF) has directed Pakistan to review its existing schemes allowing overseas Pakistanis to import used vehicles, citing risks of widespread misuse. Following the directive, the Ministry of Commerce is reviewing several schemes, with a decision expected soon.

According to reliable sources, the IMF specifically highlighted the Gift Scheme, Personal Baggage Scheme, and Transfer of Residence Scheme as vulnerable to exploitation. Currently, these schemes permit Pakistanis living abroad for 180 to 700 days to import used cars. The government is now considering extending this minimum stay requirement to 850 days to tighten eligibility.

Meanwhile, the Ministry of Industries and Production is reportedly weighing the option of discontinuing all schemes except the Transfer of Residence Scheme. This scheme has gained attention after the government recently lifted the ban on commercial imports under it.

On the other hand, local automobile manufacturers have raised concerns, urging the government to maintain strict restrictions on used car imports. They argue that lifting bans would adversely impact domestic auto production and harm the industry’s growth.

The Ministry of Finance has suggested an alternative approach: strengthening eligibility checks and monitoring systems instead of completely abolishing the schemes. Officials argue this would curb misuse while preserving the benefits for overseas Pakistanis who rely on these policies.

However, the Ministry of Commerce has opposed outright abolishment, emphasizing the schemes’ importance for expatriates and their role in maintaining goodwill with overseas Pakistanis, who contribute significantly through remittances.

A final decision is expected after consultations between key ministries and IMF representatives, as Pakistan attempts to balance the demands of international lenders with the interests of overseas citizens and the local auto sector.
Tagged:

IMF

PakistanEconomy

UsedCars

OverseasPakistanis
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