Good news: Cabinet allows overseas Pakistanis to import used vehicles

Cabinet endorsed a summary from the Ministry of Commerce that amends the vehicle import policy.

The federal cabinet has approved the Economic Coordination Committee’s (ECC) decision allowing overseas Pakistanis to import used vehicles up to three years old under two existing schemes.

According to an official statement from the Finance Division after the ECC meeting, the cabinet endorsed a summary from the Ministry of Commerce that amends the vehicle import policy.

Under the updated policy, imported vehicles must meet commercial safety and environmental standards. The maximum age for imported vehicles has been increased from two years to three years, and these vehicles will remain non-transferable for one year.

The Ministry of Commerce will now send the case to the Ministry of Law and Justice for review of the relevant Statutory Regulatory Order (SRO) before it is issued. Once vetted by the Law Ministry, the SRO will be published on the Ministry of Commerce’s website.

Last month, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial mentioned that the government is considering reducing taxes on used mobile phones brought into Pakistan by overseas Pakistanis.

He made the remarks during a National Assembly Standing Committee on Finance meeting, where taxation on both imported and locally produced mobile phones was discussed.

The FBR chairman added that the government is looking at lowering duties on low-value used mobile phones commonly brought by expatriates.

A report with proposed tax reductions is expected to be finalized by March 2026. During the briefing, Pakistan Telecommunication Authority (PTA) Chairman Major General (R) Hafeez ur Rehman shared statistics showing that only 6% of mobile phones in Pakistan are imported, while nearly 94% are locally manufactured.