The government is considering merging the personal baggage and gift schemes for used imported cars with the upcoming five-year commercial import policy, set to take effect from October 1, 2025. However, the transfer of residence scheme will remain separate.

Secretary Commerce Jawad Paul, while briefing the National Assembly Standing Committee on Commerce, said that five-year-old used cars will initially be subject to a 40% duty, which will be reduced by 10% each year. He clarified that no final decision has yet been made regarding the merger.

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Committee members Usama Ahmed Mela and Gul Asghar Khan called for a detailed briefing on used car and electric vehicle imports, expressing concerns over their possible impact on Pakistan’s foreign exchange reserves.

A delegation of used car importers, led by Hassan Danji, urged that the Engineering Development Board (EDB) should not oversee the commercial import process, arguing that it falls under the Commerce Ministry. They also requested a reduction in the proposed 40% duty and proposed forming a joint working group with government officials to frame a more balanced policy.

However, Secretary Commerce maintained that auto sector matters are under the Ministry of Industries, while his ministry already carries a heavy workload. Standing Committee Chairman Jawed Hanif Khan agreed and announced that the issue, along with recommendations, will be forwarded to the National Assembly Standing Committee on Industries and Production.