Importing a Car into Pakistan from the UK: Transfer of Residence and Duty Rules

Pakistan does not allow open commercial import of used vehicles by the general public. Instead, most UK-based Pakistani nationals and overseas Pakistanis import a personal vehicle under one of three schemes recognised by the Federal Board of Revenue (FBR): the Transfer of Residence (TOR) scheme, the Gift Scheme, or the Personal Baggage Scheme. Each has specific eligibility criteria around how long you've lived abroad and how long you've owned the vehicle, and getting the scheme wrong is the most common reason shipments get held at Karachi port.

Under Transfer of Residence, you must have lived outside Pakistan for at least two years and owned/used the vehicle for at least six months (or one year, depending on the current SRO in force) before returning permanently. The Gift Scheme allows an overseas Pakistani to gift a vehicle to a relative in Pakistan, subject to duty payment in foreign exchange remitted from abroad. The Personal Baggage Scheme is used by returning residents bringing a vehicle as part of their belongings, again with residency-duration conditions.

All three schemes carry a vehicle age limit — currently three years from the date of manufacture for most passenger cars — and only permit one vehicle per eligible individual within a set period, so check the latest FBR SRO notification before purchasing a car for shipment.

Vehicles from the UK are shipped by container — RORO is not commonly used on this route — from Southampton or Felixstowe via the Suez Canal to Port Qasim or Karachi Port. Transit time typically runs 4–6 weeks depending on transhipment. Container shipping costs roughly £1,000–£1,600 depending on vehicle size, and using a dedicated container is often preferred to reduce the risk of damage or delay given the additional scrutiny used vehicles face on arrival.

Duty and taxes under the applicable scheme are calculated on a formula combining customs duty, sales tax, federal excise duty and additional customs duty, varying by engine capacity — larger-engined vehicles attract significantly higher combined rates, sometimes exceeding 100% of assessed value for high-capacity petrol vehicles. You'll need the V5C, commercial invoice, bill of lading, passport showing time spent abroad, and — depending on scheme — evidence of foreign remittance for duty payment through a Pakistani bank. A licensed customs clearing agent in Karachi is essential to navigate the FBR's WeBOC electronic clearance system.

For a 2023 1.5-litre hatchback purchased in the UK for £14,000, imported under the Transfer of Residence scheme: shipping to Karachi approximately £1,300, combined duty/taxes for this engine size roughly £9,000–£11,000 depending on the current SRO rates, port handling and demurrage buffer £300–£500, and clearing agent fees £250–£400. Total additional cost is substantial — often exceeding the vehicle's purchase price — which is why confirming exact current rates with a Pakistani customs agent before shipping is essential rather than optional.