The government is considering a new policy framework to import, refurbish, and re-export used vehicles as part of its draft auto policy for 2026–31, aiming to boost exports and attract investment into Pakistan’s automotive sector.
The proposal outlines an import-refurbishment-export model inspired by Dubai’s Jebel Ali system. Under this setup, licensed companies would be allowed to import used vehicles, refurbish them locally, and then export them to international markets. These vehicles would not be permitted for sale within Pakistan.
The plan has gained traction following recent regional developments and is being strongly supported by the Special Investment Facilitation Council, which views it as a potential source of significant export revenue at a time when the country is facing challenges in increasing exports.
Officials said the draft policy is currently under discussion with the International Monetary Fund and will be presented to the federal cabinet after consultations are completed.
Under the proposed framework, companies operating in this space would be eligible for duty suspension incentives through the Export Facilitation Scheme. The aim is to encourage investment in specialized refurbishment facilities and integrate Pakistan into the global automotive supply chain.
Only registered firms would be allowed to participate. Companies must be incorporated under the Companies Act and demonstrate financial and technical capability, including a clear business plan focused on refurbishment and exports.
In addition, firms would need approvals from relevant ministries, register under the Export Facilitation Scheme, and ensure their facilities meet infrastructure standards verified by the Engineering Development Board.
Vehicles imported under the scheme must be re-exported within nine months, although limited extensions may be granted in exceptional cases with proper justification and additional financial guarantees. Failure to comply with the timeline would result in action by the Federal Board of Revenue under existing regulations.
