Pakistan Considers Scrapping Baggage Scheme
The Ministry of Commerce proposed to the ECC abolishing the Personal Baggage Scheme and tightening rules for used car imports.
The ministry said the move aims to curb misuse of these schemes, while the ECC will make the final decision.
The auto sector has strongly opposed the growing trend of used car imports, which surged after a 2025 ministry notification allowed vehicles up to five years old.
Industry representatives warned that the liberal policy could harm local manufacturing, which currently operates around 1,200 factories and generates significant revenue.
Data shows that 99% of the 45,758 vehicles imported between December 2024 and October 2025 came from Japan, with the remainder from countries including Thailand, the US, and the UAE.
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Officials noted that the government seeks a balanced approach to meet demand while protecting domestic industries.
India and Vietnam restrict used car imports to protect local markets, while industry leaders say Pakistan’s lenient policy harms manufacturing.
Shehryar Qadir of PAAPAM warned that the rise in used-car imports could undermine industrial gains and local manufacturing efforts.
Estimates show the local vendor industry lost around Rs50 billion during the period, while foreign-exchange pressures also grew due to the influx.
As the government drafts a new Auto Policy to boost domestic production, the ECC’s decision will play a crucial role in shaping the country’s automotive sector and localisation efforts.
