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Pakistan's government has officially abolished the Personal Baggage Scheme for importing used vehicles, a move approved by the Economic Coordination Committee and the federal cabinet. Minister for Commerce Jam Kamal Khan confirmed the decision, stating the scheme was being misused for commercial purposes.

The government has also implemented tighter conditions for the retained Gift and Transfer of Residence schemes. Under the revised policy, vehicles imported through these channels must now meet minimum safety, environmental, and regulatory standards applicable to commercial imports. The interval for importing vehicles under these schemes has been extended from two to three years, and vehicles will be non-transferable for one year after import.

Furthermore, the minimum stay-abroad requirement for eligibility has been increased to three years, with at least 850 cumulative days of stay. The condition that a vehicle must be imported from the sender's country of residence will now apply only to the Transfer of Residence Scheme. These adjustments were made after consultations with stakeholders, including the Ministry of Overseas Pakistanis and Human Resource Development.

The commerce ministry stated that the policy changes aim to facilitate overseas Pakistanis importing vehicles for genuine personal use while preventing misuse. The Personal Baggage Scheme, in particular, had been identified as a significant avenue for commercial import. While it is too early to assess the full impact, the ministry anticipates a potential decline in overall vehicle imports following these changes.

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The government had decided to abolish the Personal Baggage Scheme to prevent its commercial misuse and sought details of changes introduced in the vehicle import policy.