Overseas Pakistanis can shortly be allowed to import a hybrid automobile without customs duty

Good news for Pakistani expatriates within the UAE and around the world. You may shortly be allowed to import one hybrid automotive to your home country tax-free upon presenting proof of remitting $100,000 using legal banking channels within 2 years.

The move won’t solely profit the overseas Pakistanis, however, it will facilitate improve foreign exchange reserves within the country, presently facing an acute monetary crisis.

However, the initiative continues to be a proposal, ready by the Ministry of Overseas Pakistanis and Human Resources Development (MOPHRD).


The Ministry has forwarded the proposal to the Ministry of Industries & Production and Engineering Development Board (EDB) for their opinion to formally grant foreign exchange remittance Card (FERC) holders the privilege to avail the tax exempted vehicle import.

$100,000 remittance pre-requisite

The proposal letter reads: “Duty-free import of 1 hybrid automobile up to 3000cc to foreign exchange remittance Card (FERC) holders, who remit $100,000 over a period of 2 years.”

It is not clear however long it might take to nail down the decision. The ministry, however, is keen to introduce the scheme “as shortly as possible”.

Following directions from the Prime Minister Imran Khan’s Delivery Unit, numerous departments are requested to place up their concessional proposals that they might offer to the expatriated Pakistanis.

Overseas Ministry

The Overseas Ministry is presently in the process of developing an inventory of major concessions and incentives for them.

The departments, he said had been requested to submit their comments on the proposal at the earliest in order that the Ministry of Overseas Pakistanis might prepare the ultimate list in stipulated time as suggested by the Prime Minister’s workplace.

Syed Zulfiqar Bukhari, Special Assistant to the Pakistan Prime Minister for Overseas Pakistanis & HRD on Wednesday tweeted in support of the proposal.

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“In recognition of our Overseas Pakistanis who use banking channels to send a reimbursement home, my ministry has projected to reward them for their contribution to the national finances. I’ll be backing this initiative with full force thus in time we are able to kill the menace of hundi/hawala (illegal banking channels),” tweeted Bukhari.

Current vehicle import rules

Currently, Pakistan expatriates within the UAE are allowed to import a saloon automotive of up to three years old and an SUV (up to 5 years old).

However, they need to pay hefty Customs duties — from 60 minutes to more than 100% of the worth of the vehicle they import.

A Pakistani expatriate will send a vehicle to Pakistan to his blood relatives together with father, mother, sister, brother or kids underneath “Gift Scheme” if he’s resident of the UAE for a minimum of 2 years — however, a similar Customs tax applies.

He is also allowed to require a car underneath “Baggage Dllowance” if he’s a resident of the UAE for a minimum of six months.

Also, an expatriate is entitled to require the automotive to Pakistan underneath the “Transfer of Residence” rules.

However, only a few residents import cars for personal use because of the very high customs duties.

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Good initiative

Iqbal Dawood, President of the Pakistan Business Council in Dubai welcome the new proposal and said: “It will be very useful for residents if the Pakistani government permits the duty-free import of hybrid vehicles,” he said.

He, however, said that the import of vehicles by Pakistani expatriates has nearly been closed for the last one year as numerous departments in Pakistan harass overseas Pakistanis relating to their income resources.

“People are currently afraid to import vehicles as they do not face unneeded inquiries,” he said.