Islamabad, December 11, 2025 – The All Pakistan Motor Dealers Association (APMDA) has urgently appealed to Prime Minister Shehbaz Sharif to intervene and reverse the Economic Coordination Committee’s (ECC) December 9 decision that abolished the popular Personal Baggage Scheme, Gift Scheme, and Transfer of Residence (TR) Scheme for overseas Pakistanis bringing vehicles into the country.
In a strongly-worded letter dated December 11, APMDA Chairman H.M. Shahzad warned that the sudden scrapping of these decades-old schemes will deliver a devastating blow to the automobile import sector and the livelihoods of millions of Pakistanis linked to it.
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Overseas Pakistanis remit over USD 40 billion annually and, under the previous schemes, were allowed to import one vehicle every two years on concessional duty. In fiscal year 2024-25 alone, the sector contributed nearly USD 500 million to national exchequer through duties and taxes, the letter highlighted.
The association argued that the ECC’s move, ostensibly to curb misuse, has instead punished genuine overseas Pakistanis and pushed thousands of authorised importers, clearing agents, and ancillary workers toward unemployment. Commercial importers, meanwhile, continue to enjoy significantly higher duty concessions, creating an uneven playing field.
“On one hand, harsh conditions have been imposed on vehicles arriving under TR, Baggage and Gift schemes; on the other, commercial vehicle imports have been subjected to highly unreasonable terms. This dual pressure is pushing the entire automobile import business toward collapse,” the letter stated.
APMDA has requested an immediate high-level meeting with the Prime Minister and relevant ministries to present detailed data and propose safeguards that protect revenue without destroying the overseas Pakistanis’ facility