Pakistan, IMF Agree to End Gift and Baggage Car Import Schemes; Residence Scheme to Be Tightened

Islamabad: The **Government of Pakistan** and the **International Monetary Fund (IMF)** have reached an agreement to **abolish the “Gift” and “Baggage” car import schemes** and to **tighten regulations** under the **“Transfer of Residence” scheme**, as part of broader reforms to improve governance and curb corruption.

According to **Geo News**, the decision comes under the IMF’s **governance and anti-corruption assessment report**, which emphasizes stricter oversight on vehicle imports. The proposal will soon be presented to the **Economic Coordination Committee (ECC)** and the **federal cabinet** for approval.

Currently, Pakistan allows the import of **used cars up to five years old** under commercial import regulations, but new conditions and security checks are being introduced to prevent misuse.

A government official revealed that the IMF has set a **deadline** for these reforms, noting that vehicles are often imported from **Japan and the UK through Dubai**, a practice that will now be curtailed through tighter controls.

The IMF discussions are part of the **second review of the $7 billion Extended Fund Facility (EFF)**, under which Pakistan is expected to receive **$400 million** as the first tranche from the **$1.4 billion FSF facility** once the review concludes.

Sources said the IMF-backed **task force** has also recommended amending the **Civil Servants Act of 1973** to make the **assets of grade 17–22 government officers and their families public**, along with proposed amendments to **election, NAB, and FIA laws** to strengthen transparency.

Additionally, the task force suggested **training programs for NAB and FIA officers** and the **removal of FIA investigators from immigration duties** at airports to reduce conflicts of interest.

Under the new import framework:

* The **Baggage Rules** and **Gift Scheme** will be **abolished**.
* The **Transfer of Residence** scheme will only allow car imports from countries where the owner has **lived for at least one year**, with measures to **prevent misuse** of the provision.

The agreement marks a key step in Pakistan’s effort to align trade and fiscal policies with IMF’s transparency and governance standards.