Sources told Propecticani, the International Monetary Fund (IMF) has demanded Pakistan to review and tighten its used car import schemes for Pakistanis abroad, which cited concerns about widespread misuse.
According to sources, the IMF has advised Pakistani authorities to strengthen the qualification standard for importing vehicle under the transfer of gift scheme, personal equipment scheme, and residential scheme. These schemes currently allow Pakistanis abroad, who have spent only to import used vehicles abroad between 180 and 700 days.
In the last financial year (2024-25), about 40,000 vehicles were imported under these schemes, which raised concerns about potential abuse and shortcomings.
The Ministry of Industry and Production is considering shutting down all such schemes except the transfer of a residential scheme, especially after the recent government’s recent decision, which will lift the restrictions on the used vehicle’s comrat.
However, the Ministry of Finance has proposed to tighten the standard of existing beliefs rather than completely eliminate the schemes, which aims to prevent misuse. Meanwhile, the Ministry of Commerce has opposed the complete elimination of the schemes, citing their importance to Pakistanis abroad.
According to the IMF’s recommendations, the government is now reviewing the requirements of vehicles under these schemes. Under the transfer of the Gift Scheme and Residential Scheme, the minimum stay abroad can be increased from 700 days to 850 days in the last three years.
For a personal equipment scheme, it is expected that within the last seven months before the application, there will be no minimum changes in 180 days abroad.
There is a widespread consensus among stakeholders that Pakistanis abroad should be allowed to import vehicles from any country, not their current residence.
It is also worth noting that Pakistan’s local carmaker is urging the government to review these schemes, and it has been claimed that the increasing arrival of the imported vehicle is reducing the demand for local collectors.
However, sources argue that despite these claims, the income of local car makers continues to increase every year, even when concerns over locally deposited vehicle standards and standards remain.