New SRO Issued on Imported Cars – Pakistan Banned Personal Baggage Policy
The Government of Pakistan has issued a new SRO (Statutory Regulatory Order) that has completely changed the rules for imported cars in the country. Under this latest notification, the import of vehicles through the personal baggage scheme has been banned.
This decision has shocked overseas Pakistanis, car dealers, and buyers who were planning to import vehicles under personal use categories. The policy is being described as one of the strictest moves against car imports in recent years.
In this article, we explain what the new SRO says, why the government took this step, who will be affected, and what options are still available for car importers in Pakistan.
What Is the New SRO About Imported Cars?
According to the newly issued SRO, cars can no longer be imported under the Personal Baggage Scheme. This means that individuals returning to Pakistan cannot bring vehicles as part of their personal luggage, even if they meet previous eligibility criteria.
The order has been implemented by Federal Board of Revenue through Pakistan Customs, and it applies to all ports and airports across Pakistan.
What Was the Personal Baggage Scheme?
Before this SRO, overseas Pakistanis were allowed to import cars under three schemes:
1. Personal Baggage Scheme
For overseas Pakistanis returning permanently.
2. Transfer of Residence Scheme
For those shifting residence to Pakistan after living abroad for a long period.
3. Gift Scheme
For sending vehicles as gifts to relatives in Pakistan.
The personal baggage scheme was widely used because it allowed more flexibility and faster clearance. However, this option has now been completely removed.
Personal Baggage Car Import Is Now Banned
Under the new policy:
- ❌ Importing cars under personal baggage is no longer allowed
- ❌ Even used or small engine vehicles are not exempted
- ❌ Vehicles already booked but not cleared may face issues
- ❌ Misuse cases will face legal action
The government has clarified that only legal and documented schemes will remain active.
Why Did the Government Ban This Scheme?
The decision was taken due to several serious concerns:
1. Massive Misuse of the Scheme
Many commercial dealers were using fake overseas profiles to import cars in bulk.
2. Revenue Loss
Billions of rupees were lost due to under-invoicing and tax evasion.
3. Pressure on Foreign Exchange
Imported vehicles increase the dollar outflow, which Pakistan is trying to control.
4. Smuggling and Fake Documents
Investigations revealed forged passports and fake travel histories being used.
Government’s Official Position
Officials from Federal Board of Revenue stated that the policy aims to:
- Promote transparency
- Protect foreign exchange reserves
- Support local automobile industry
- Stop commercial misuse
They also hinted that more digital checks will be introduced in car imports.
Who Will Be Affected the Most?
Overseas Pakistanis
Many overseas Pakistanis who planned to bring cars for personal use will be disappointed.
Used Car Dealers
Dealers who relied on baggage imports will face serious business impact.
Luxury Car Buyers
High-end vehicles were mostly imported through personal baggage routes.
Import Agents
Clearing agents handling baggage imports will also lose business.
Are Any Car Import Schemes Still Allowed?
Yes, the ban applies only to the personal baggage scheme.
The following schemes are still allowed:
✔ Transfer of Residence Scheme
- Minimum stay abroad required
- Strict documentation
- One vehicle allowed
✔ Gift Scheme
- Only eligible relatives
- Heavy taxes applicable
- One-time facility
However, authorities have warned that rules may become stricter even for these schemes.
Impact on Pakistan’s Car Market
Short-Term Impact
- Prices of imported cars may increase
- Supply of used imported vehicles will drop
- Delivery delays for booked cars
Long-Term Impact
- Local assembly may benefit
- Reduced import dependency
- Market stabilization expected
Car dealers believe that local manufacturers may gain more power due to reduced competition.
Reaction from Car Dealers and Public
The policy has received mixed reactions.
- Some people welcomed the move to control imports
- Others criticized it as anti-overseas Pakistani
- Car dealers demanded a grace period for pending shipments
Social media is flooded with debates, especially from Pakistanis living in the Middle East.
What Happens to Cars Already in Transit?
Cars that were:
- Booked before SRO
- Already shipped
- Arrived but not cleared
May face special review by customs authorities. Importers are advised to contact Pakistan Customs immediately to avoid penalties.
Legal Action Against Fake Imports
The SRO also authorizes:
- Seizure of illegally imported cars
- Heavy fines
- Blacklisting of repeat offenders
- Criminal cases for document forgery
This indicates that the government is serious about enforcement.
What Should Overseas Pakistanis Do Now?
If you are planning to import a car:
- Avoid personal baggage route completely
- Consult official customs guidelines
- Use legal schemes only
- Verify documentation carefully
Experts suggest waiting until policy stability improves.
Will the Policy Change Again?
Government sources say the ban is long-term, but:
- Policies may be reviewed based on economic conditions
- IMF-linked reforms could further tighten imports
- Digital verification systems are under development
So far, no relaxation has been announced.
Conclusion – New SRO Issued on Imported Car Banned Personal Baggage Policy
The new SRO banning imported cars under the personal baggage scheme marks a major shift in Pakistan’s auto import policy. While the move aims to stop misuse and protect the economy, it has created challenges for overseas Pakistanis and the used car market.
Anyone planning to import a vehicle must now strictly follow legal schemes and stay updated with official notifications. The era of easy baggage car imports in Pakistan appears to be over.
Pakistan has banned the import of cars under the personal baggage scheme through a new SRO. The decision aims to stop misuse, control foreign exchange outflow, and improve transparency. Only transfer of residence and gift schemes remain allowed under strict rules.
