Lahore, January 12, 2026: The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has lauded the Government of Pakistan for its timely and decisive measures to regularize used car import schemes, describing the move as a major step toward restoring their original intent for genuine Overseas Pakistanis while safeguarding the country’s local automotive and auto parts industry.
PAAPAM noted that for years, loopholes in the Personal Baggage, Transfer of Residence, and Gift schemes were widely misused for commercial resale. Instead of benefiting bona fide expatriates, these schemes facilitated smuggling-like practices, encouraged reliance on informal remittance channels, and caused significant foreign exchange losses. The unchecked import of nearly 40,000 vehicles annually severely disrupted local assembly operations, undermined vendor investments, threatened employment, and eroded national revenue.
Under the revised policy framework, effective January 2026, the government has reinstated the true spirit of these schemes. Imports will now be restricted exclusively to Overseas Pakistanis under the Transfer of Residence and Gift schemes, with the Personal Baggage option abolished. Eligibility has been limited to vehicles not older than three years, alongside mandatory compliance with safety, quality, and environmental standards. Additional safeguards—including a one-year non-transferability condition, strict verification of overseas status, and transparent remittance channels—will effectively close past loopholes and prevent proxy misuse.
Senior Vice Chairman (SVC) PAAPAM emphasized that the new framework strikes a sustainable balance between international liberalization pressures and national industrial priorities. By stabilizing demand for locally manufactured parts, protecting jobs across vendor networks and assembly plants, and ensuring fair competition, the policy strengthens Pakistan’s economy while preserving the long-term viability of the auto sector.
Commenting on the development, the Chairman of PAAPAM stated, “This policy marks a significant victory for Pakistan’s auto and auto parts industry. It curbs commercial abuse, protects jobs and vendor investments, and ensures a level playing field, while continuing to facilitate genuine Overseas Pakistanis. The government’s consultative approach has achieved the right balance between industrial protection and expatriate facilitation, and PAAPAM is proud to have contributed constructively to this important outcome.”
