Pakistan has officially terminated the Personal Baggage Scheme (PBS) for the importation of used vehicles. Commerce Minister Jam Kamal Khan confirmed the policy shift during a National Assembly session, responding to inquiries from Dr. Shazia Sobia regarding measures to prevent the commercial exploitation of import incentives intended for overseas citizens.
The decision, which received backing from the federal cabinet and the Economic Coordination Committee, aims to ensure that import benefits are reserved for genuine personal use by expatriates. While the PBS has been scrapped, the government has retained the Gift and Transfer of Residence schemes, albeit with significantly more stringent regulatory requirements.
Updated Import Policy Requirements
- Minimum stay-abroad threshold: Increased to three years, requiring a cumulative stay of at least 850 days for all schemes.
- Geographic restriction: The requirement that a vehicle must be imported from the country of the sender’s residence now applies exclusively to the Transfer of Residence Scheme.
- Regulatory alignment: Vehicles imported under the remaining schemes must now comply with the same safety, environmental, and regulatory standards mandated for commercial used vehicle imports.
- Transferability: Vehicles brought in under these schemes are subject to a one-year non-transferable status.
- Import frequency: The interval between vehicle imports has been extended from two years to three years.
The Ministry of Commerce developed these adjustments following extensive consultations with stakeholders, including the Ministry of Overseas Pakistanis and Human Resource Development. Officials noted that while the original intent of these schemes was to assist Pakistanis living abroad, the PBS had become a frequent target for commercial abuse.
Regarding the potential economic impact, the ministry stated it is premature to quantify the exact effect on total vehicle import volumes. However, they acknowledged that the combination of abolishing the PBS and tightening the criteria for other schemes is likely to result in a decline in overall imports. The report also notes that who asked whether the government had decided to abolish the PBS to prevent its commercial misuse and sou, the minister was responding during the Question Hour of the National Assembly to queries raised by Dr Shazia Sobia.