Importing a car into Pakistan in 2026: gift and transfer of residence rules, age limits and duty

By Bilal Naeem · Updated: 15 October 2026 · 4 min read

In short

Personal baggage is gone: in 2026 overseas Pakistanis import cars as a gift or on transfer of residence. Eligibility, age limits, duty and documents.

Work it out with the Car import duty calculator →

Since January 2026 the way overseas Pakistanis bring a car home has changed. Ministry of Commerce S.R.O. 61(I)/2026 ended the personal baggage scheme, leaving two routes, gift and transfer of residence (TR), and tightened both. This guide covers who can import, how old the car can be, how duty is worked out, and what registration costs once the car leaves the port.

What changed in 2026

Importing a car as personal baggage is no longer allowed.
The bar on importing again after a previous car rose from two years to three; “last three years” now means 850 days from the goods declaration of your last import.
The 700-day figure in the policy is now 850 days. FBR’s guide describes 700 days as the minimum stay abroad in the previous three years.
A car imported as a gift or on TR cannot be transferred to anyone else for one year.
A TR car must come from the country where you live.
Safety and environmental standards set for commercial imports of used cars now also apply to gift and TR cars.

Who can import

FBR’s guide says only a Pakistani national living abroad, including dual nationals and Pakistan Origin Card holders, and not anyone under 18. FBR’s page adds that students supported by money from Pakistan and non-earning family members are not eligible.

Gift: to a family member living in Pakistan: parents, brothers, sisters, husband or wife, and children over 18. The papers include the recipient’s CNIC, and the bill of lading names the recipient.
Transfer of residence: when you yourself are moving back for good. The guide says the bill of lading must be dated within 120 days of your arrival in Pakistan, and the car must now come from the country you lived in.

The age limit

A car must be no more than three years old, and other vehicles such as jeeps no more than five. Age is counted from 1 January of the year after manufacture to the shipment date on the bill of lading.

Example: a car made in 2023 starts counting on 1 January 2024. Shipped on 15 October 2026, it is 33 completed months old (2 years 9 months), inside the three-year limit. If the same car shipped in January 2027 or later, it would no longer qualify.

How duty is assessed

1. Used Asian-make cars up to 1800cc: under S.R.O. 577(I)/2005 a fixed dollar amount replaces customs duty, sales tax and withholding tax, reduced by age. FBR’s Vehicles page lists:

Engine (cc)	Fixed amount
800	US$4,800
801–1000	US$6,000
1001–1300	US$13,200
1301–1500	US$18,590
1501–1600	US$22,550
1601–1800	US$27,940

FBR’s consolidated copy of the S.R.O. shows lower amounts for the top four bands, and we did not find the amendment that raised them, so confirm the figure with your clearing agent or Customs. Cars under this scheme do not pay additional customs duty (S.R.O. 1063(I)/2026).

2. All other cars: duty is charged on an assessed value. Under CGO 14/2005 as amended, Customs uses a valuation ruling where one exists, otherwise the manufacturer’s suggested retail price less depreciation, plus freight, 1% insurance and 1% landing charges. For cars, depreciation is 1% a month up to 60%; the example car above gets 33%. On that value:

Customs duty (2026-27 tariff, petrol cars): 850cc: 30%; 851–1000cc: 35%; 1001–1500cc: 40%; 1501–1800cc: 45%; 1801–3000cc: 50%; 3000+cc: 50%.
Additional customs duty: 4% on goods in the 25% and higher slabs.
Regulatory duty: under S.R.O. 1064(I)/2026, for example 8% on used cars above 1300cc and 20% on many cars above 1800cc; gift cars are not exempt.
Special excise duty (new): the Finance Act 2026 set 86% on imported cars of 2000cc to 3000cc and 92% above 3000cc; check this before importing a large car.
Income tax: Customs collects section 148 advance income tax; the section 231B tax is then not charged again at registration if section 148 tax was collected from the same person.
Capital value tax: 1% of the value of a car above 1300cc, collected by Customs at import.

Commercial imports of used vehicles carry an extra 30% regulatory duty under S.R.O. 1065(I)/2026; gift and TR imports are not covered by that notification.

Documents

Goods declaration, the export certificate from abroad, and the purchase receipt.
Bill of lading (for a gift, showing the recipient as consignee).
An attested copy of the sender’s passport or POC (the original at clearance), and for a gift, the recipient’s CNIC.
The bank encashment certificate for the money used to pay the duty.

Steps at the port

When the car arrives, your clearing agent files the goods declaration on Customs’ WeBOC system.
Customs checks the documents and your days abroad, examines the car for model, engine and date of manufacture, and settles the value or the fixed amount.
Duty is paid at the bank, and the car is released after payment.
You then register it with your provincial Excise department; for a year it cannot pass to anyone else.

We have not re-verified each port step against a current official document; use an experienced, licensed clearing agent and have papers ready before the car lands to keep storage days down.

What registration costs

After clearance, your province charges the registration fee, token tax and other fees. For a 1300cc imported car worth Rs 6,000,000, the car registration calculator gives:

Province	Registration fee	Token tax	Other fees	Excise total
Punjab	Rs 120,000	Rs 18,000	Rs 1,500	Rs 139,500
Sindh	Rs 75,000	Rs 2,000	Rs 5,550	Rs 82,550
Islamabad	Rs 120,000	Rs 15,000	Rs 3,400	Rs 138,400

Income tax comes on top. For token tax, see our token tax guide and the token tax calculator. If you are weighing a locally made car on instalments instead, compare with the car loan calculator.

Frequently asked questions

Can I still bring a car under the personal baggage scheme?

No. Ministry of Commerce S.R.O. 61(I)/2026 of 15 January 2026 removed personal baggage from the Import Policy Order 2022. Overseas Pakistanis can now import a used car only as a gift to family or on transfer of residence.

How old can an imported used car be?

Not more than three years for a car and five years for other vehicles such as jeeps. Age runs from 1 January of the year after the car was made to the shipment date on the bill of lading, so a 2023 model shipped on 15 October 2026 is 2 years and 9 months old.

Who can receive a gifted car?

A family member normally living in Pakistan. FBR’s guide defines family as parents, brothers, sisters, husband, wife and children, but not children under 18. The donor must meet the stay-abroad rule, and duty has to be paid in foreign exchange.

Can I sell the car after it is cleared?

Not for a year. S.R.O. 61(I)/2026 added a rule that cars imported under the gift or transfer of residence scheme cannot be transferred for one year from the date of import.

How is the duty paid?

In foreign exchange from abroad. FBR’s guide says duties and taxes on gift and transfer of residence cars must be paid from money remitted from the sender’s own account abroad, supported by a bank encashment certificate.

Calculators for this guide

Sources

This guide explains the rules for general information. It is not official, legal or tax advice. Rules change, so check the official source or a qualified professional before acting. See how we check our information.