How can Pakistanis in UAE and GCC import used cars under new rules?
Transfer and gift routes explained with eligibility, limits and compliance rules
DUBAI/ISLAMABAD – Pakistanis living in the United Arab Emirates (UAE) and across the Gulf have been given a clear but narrower pathway to bring their cars home after Islamabad formally approved a revised used-vehicle import policy.
The decision was ratified by the Federal Cabinet following recommendations of the Economic Coordination Committee meeting held on December 9, 2025. It allows overseas Pakistanis to import used vehicles up to three years old, but only through two routes, the Transfer of Residence and Gift schemes.
The clarification matters for a diaspora that is both large and highly mobile. More than 1.7 million Pakistani citizens live in the UAE, while over 5.5 million reside across GCC states, with the global Pakistani diaspora exceeding 9 million. Many families returning after years abroad have sought a way to take high-value household goods and cars with them, a demand that had been pushing policymakers to tighten and redefine the rules.
Who qualifies
Under the new framework, only overseas Pakistanis are eligible to bring in used vehicles through the retained schemes. The Federal Board of Revenue has confirmed that residents of the UAE, GCC and other countries fall within this category, but commercial dealers operating through labourers’ documents or third-party passports are excluded.
The Transfer of Residence route is designed for those relocating back to Pakistan after a prolonged stay abroad, while the Gift scheme allows an overseas Pakistani to send a vehicle to a close family member in Pakistan. A key condition is the length of stay overseas. Applicants must now demonstrate a continuous residence abroad of at least three years, an increase from the earlier two-year requirement.
For Transfer of Residence cases, the vehicle must originate in the same country as the applicant’s residence, closing the long-standing practice of routing cars through third countries before shipping them to Pakistan. This origin requirement directly affects Pakistanis in the UAE and other GCC states who previously relied on cross-border sourcing.
Schemes allowed
Only two channels now remain open. The Transfer of Residence and Gift schemes have been retained, while the widely used Personal Baggage scheme has been abolished. Officials said the baggage route had been heavily misused by commercial importers who used expatriates’ travel documents to bring in luxury sedans and SUVs in bulk, avoiding commercial import taxes.
New vehicles can still be imported freely into Pakistan by anyone, subject to the payment of applicable duties and taxes. The restriction applies only to used vehicles brought in under expatriate concessions. Motorcycles and scooters can only be imported through the Transfer of Residence route, not as gifts.
Certain categories of people are also excluded from using the schemes. Students receiving remittances from Pakistan, non-earning dependents, and anyone who has imported, gifted or received a vehicle in the previous two years are not eligible to apply again under these expatriate facilities.
Vehicle limits
The age cap for used vehicles has been set at three years from the date of manufacture. This applies to both retained schemes and represents an extension from the earlier two-year window. At the same time, every imported vehicle must now meet commercial import safety and environmental standards, aligning expatriate imports more closely with the rules faced by professional car importers.
Once a car arrives in Pakistan under either scheme, it cannot be sold or transferred for one year. Customs authorities will enforce the non-transferability clause, which was introduced to prevent speculative imports and quick resale in the domestic market.
The existing duty and tax structure has not been altered by the new decision. Import incentives for Hybrid Electric Vehicles remain in place, with a 50 percent duty and tax exemption for HEVs up to 1,800cc and a 25 percent exemption for hybrids between 1,800cc and 2,500cc, making hybrid models particularly attractive for returning Pakistanis.
Process steps
The cabinet approval followed months of inter-ministerial debate. The ECC had first reviewed the proposal on October 24, 2025 and asked the Ministry of Commerce to consult other departments before bringing it back. Officials from the FBR, Ministry of Industries and Production and its Engineering Development Board, Ministry of Finance and the Ministry of Overseas Pakistanis and Human Resource Development were part of the consultations.
The Ministry of Commerce and the FBR supported keeping the Transfer of Residence and Gift schemes. The engineering board pushed for scrapping the Gift and Personal Baggage routes due to misuse and foreign exchange losses, while the overseas Pakistanis ministry argued for retaining all schemes to protect workers’ welfare. The compromise kept two routes but attached tighter conditions.
With the cabinet’s ratification in place, the Ministry of Commerce has sent the decision to the Ministry of Law and Justice for vetting of the Statutory Regulatory Order. Once the SRO is cleared and uploaded on the ministry’s website, Pakistan Customs will begin enforcing the new rules at ports of entry, including for shipments originating from the UAE and other GCC hubs that handle the bulk of expatriate vehicle exports.