[Gulf Region-South Asia Auto and Vehicle Trade Watch] According to several Gulf travel and logistics service agencies citing official sources from Pakistan, the federal cabinet of Pakistan has approved new regulations allowing overseas nationals to import used cars no more than three years old through the "Transfer of Residence" and "Gift" programs. Pakistan's Federal Revenue Service (FBR) subsequently confirmed that the new policy has "immediate effect" and is expected to simplify the vehicle transportation and customs clearance process for long-term expatriate families returning home. The report specifically mentioned that the number of Pakistan expatriates living in the United Arab Emirates is about 1.7 million, and the new rules are seen as a direct response to the voices of this group. Nearby car dealer

According to the new regulations, relevant vehicles are not allowed to be resold within 12 months after import; at the same time, the "Personal Baggage Plan" is still not applicable, which means that passengers cannot check the vehicle as baggage and still need to go through freight channels (such as ro-ro ships) transportation. Travel consultants pointed out that this change is expected to reduce the overall cost of United Arab Emirates employees bringing high-value vehicles back to Pakistan with the relocation, but also reminded that key links have not been simplified: customs valuation, vehicle qualification/compliance documents and other procedures still need to be completed at the Port of Karachi or Qassim, and time and fees must be reserved in advance.

From the perspective of policy intentions, analysts believe that this liberalization measure is aimed at promoting progress related to remittances from expatriates while trying to avoid putting additional pressure on Pakistan's foreign exchange reserves. However, the industry also generally judges that although the transportation of used cars from the Gulf to Pakistan may experience a "slight increase," factors such as engine displacement restrictions, environmental standards and customs valuation will still inhibit the rapid expansion of scale.

[Brief Comment] For China automobile exporters, this change sends two signals: First, Pakistan's automobile policy is more clearly tilting towards the "expatriate channel". In the short term, the return of used cars within three years may affect some entry-level new cars. Competition is formed for new cars; second, due to standards and costs, the increase is more likely to be concentrated in medium and high-value vehicles in the Gulf region, which will not completely change the fundamentals of Pakistan's new car market.

Source: Guangdong Good Car

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