Exclusive Car Import Schemes for Overseas Pakistanis

Pakistani Citizens Abroad: Exclusive Car Import Schemes

Citizens residing in Pakistan often seek opportunities to import used vehicles into the country, particularly those working overseas. However, the latest announcement from the Federal Board of Revenue (FBR) made it clear that only Pakistani citizens living abroad are eligible to import vehicles under the gift or transfer of residence schemes. This directive also affects the Pakistani community residing in the United Arab Emirates, including Dubai.

What schemes are available?

The import of used vehicles is possible under three official options:

Personal baggage scheme

Gift scheme

Transfer of residence scheme

These schemes are exclusively available to Pakistanis living abroad, including dual citizens. The age of the vehicle is also strictly regulated: passenger cars can be a maximum of three years old, while other vehicles can be up to five years old at the time of import.

Exclusions

The following individuals are not eligible for vehicle import:

Students receiving financial support from Pakistan

Non-earning family members living abroad

Individuals who have already imported, received, or gifted a vehicle in the past two years

Rules for motorcycles and scooters

Motorcycles and scooters can only be imported under the transfer of residence scheme. The gift or baggage schemes do not apply to them.

Tax benefits for hybrid vehicles

To promote environmentally friendly technologies, the Pakistani government provides significant customs and tax benefits for hybrid cars:

HEV vehicles under 1800 cc: 50% discount

HEV vehicles between 1800–2500 cc: 25% discount

Customs and tax costs

The customs and tax costs for Asian-made vehicles suitable for passenger transport (in US dollars or equivalent Pakistani rupees):

Customs and tax total: $4,800 - $27,940

Refutation of false information and customs evaluation

Recently, several media reports emerged claiming that some luxury vehicles were deliberately undervalued during customs procedures, reducing the tax burden. The FBR categorically denied this and indicated that the valuation of the affected vehicles was based on actual market value. With the introduction of the Faceless Customs Assessment (FCA) system, the opportunity for human intervention in the process was minimized.

The system aims to ensure transparency and efficient customs handling. The implementation of the FCA began in December 2024, and its use has since significantly expanded.

Money laundering suspicion and official response

There was also an accusation of money laundering related to imported vehicles. The FBR stated that the transfer of residence and gift schemes do not involve foreign currency outflows from Pakistan, and the system has previously operated similarly. The customs authority applies accurate and high-value customs assessments for each vehicle, eliminating the possibility of state revenue loss.

Summary

It is important for citizens living in Pakistan to know that only Pakistanis abroad are eligible to import used cars under strict conditions. The system established by the FBR aims for fair customs evaluation, maximization of taxes, and prevention of system abuse. Those planning to import vehicles from Dubai or other countries into Pakistan should thoroughly review the scheme's conditions, especially the eligibility criteria and customs burdens.

(Based on the Federal Board of Revenue (FBR) announcement.)