The government is planning a new system to bring used vehicles into Pakistan, fix them, and then send them abroad again. This idea is part of the upcoming Auto Policy 2026-31 and is being seen as a new way to increase exports and attract investment in the auto sector.
Under this plan, companies will be allowed to import used vehicles, repair or upgrade them locally, and then export them to other countries. One important rule is that these vehicles cannot be sold inside Pakistan. They must go back out to international markets.
This model is inspired by Dubai’s Jebel Ali system, where similar work is already being done successfully. Pakistan wants to follow a similar path to become part of the global automotive supply chain.
The idea has become more serious after recent global tensions, including the Gulf war situation. The Special Investment Facilitation Council (SIFC) is strongly supporting this plan. They believe it can bring in millions of dollars through exports, which Pakistan really needs right now.
At the moment, the policy is being discussed with the International Monetary Fund (IMF). After these talks are completed, it will be presented to the federal cabinet for approval.
To encourage businesses, the government is offering incentives under the Export Facilitation Scheme. This means companies can import vehicles without paying full duties, as long as they follow the export rules. The goal is to attract serious investors who can build proper refurbishment facilities in Pakistan.
Not every company will be allowed to join. Only registered companies with proper financial strength and technical expertise can apply. They must also submit a clear business plan showing how they will repair and export vehicles.
Companies will need approvals from relevant ministries and must register under the Export Facilitation Scheme. Their facilities will also be checked by the Engineering Development Board to make sure they meet the required standards.
There is also a strict timeline. Any vehicle brought into Pakistan under this scheme must be exported within nine months. In special cases, companies may get extra time, but only if they provide a valid reason and additional financial guarantees.
If a company fails to export the vehicles within the given time, the Federal Board of Revenue (FBR) will take action according to the rules.
Overall, this policy is an attempt to open a new door for Pakistan’s economy. If managed properly, it could create jobs, bring foreign investment, and help the country earn valuable export revenue.
