Pakistan is reportedly evaluating a new automotive policy framework for 2026–31 that would permit the import of used vehicles, their refurbishment within the country, and subsequent re-export to international markets. The initiative is being viewed as a potential shift aimed at positioning Pakistan as a regional hub for vehicle reconditioning and trade, rather than focusing solely on domestic consumption.
The proposed model is inspired by the successful industrial ecosystem of Dubai’s Jebel Ali, where imported goods are processed, upgraded, and re-exported efficiently through a well-regulated free-zone system. Under Pakistan’s plan, only licensed and approved companies would be authorized to import used vehicles, carry out refurbishment or value addition, and then export them abroad. A key condition of the framework is that these vehicles would not be allowed to enter the local market, ensuring the system remains export-oriented.
Policy discussions are currently underway under the supervision of the Special Investment Facilitation Council (SIFC), which is coordinating with relevant ministries to refine the structure. The proposal is also being reviewed in consultation with the International Monetary Fund (IMF) to ensure compliance with broader economic and regulatory commitments before it is presented for final cabinet approval. Authorities are emphasizing strict monitoring mechanisms to prevent misuse and ensure transparency.
According to the draft conditions, vehicles brought under this scheme would be required to be re-exported within a maximum period of nine months. This time-bound framework is designed to encourage quick turnover, attract foreign investment in automotive logistics and refurbishment industries, and generate skilled employment opportunities, while also strengthening Pakistan’s position in global trade networks.
