Pakistan is preparing to establish a dedicated automotive processing zone at Port Qasim. The proposed facility will cover 150 acres.
The project aims to strengthen vehicle trade, refurbishment and exports through a port-based automotive ecosystem. It will also bring several related businesses together.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry announced the plan during a meeting with Port Qasim Authority officials.
The meeting was attended by Port Qasim Authority Chairman Rear Admiral (retd) Syed Moazzam Ilyas and members of the PQA Board.
New Automotive Zone Planned at Port Qasim
The proposed automotive processing zone will be developed in phases. Moreover, future expansion will depend on market demand.
The first phase is expected to include 264 operational units across five specialised segments. These units will support several areas of the automotive trade.
The planned facilities include 30 commercial units and 84 refurbishment workshops. The project will also feature 60 vehicle display units.
In addition, the first phase will include 20 machinery yards and 70 auto spare-parts units.
The combination is designed to create an integrated platform for businesses operating across different stages of vehicle trade.
Port Location Could Ease Vehicle Trade
The zone will be established within the Port Qasim industrial corridor. This location will give businesses direct access to the port.
As a result, companies could reduce inland transport and logistics requirements for imported and exported vehicles.
The project also aims to create a single platform for vehicle imports, refurbishment, display and exports.
According to the project concept, the facility will introduce Pakistan’s first dedicated Import-Refurbishment-Export (AIRE) framework for the automotive sector.
The port-based setup could therefore connect several automotive activities within one location.
AIRE Park Targets Export Growth
The proposed AIRE Park could also support Pakistan’s foreign exchange earnings. Project proponents estimate an annual net foreign exchange surplus of around $200 million.
The estimate is based on projected exports worth approximately $500 million.
Furthermore, the facility could support automotive businesses by bringing different services into one ecosystem.
These services would include commercial operations, vehicle refurbishment and machinery facilities. Vehicle displays and spare-parts suppliers would also operate within the proposed zone.
This structure could make it easier for businesses to coordinate activities linked to vehicle imports and exports.
Strategic Location Could Support Regional Trade
Port Qasim’s location has been identified as a major advantage for the proposed project. The port serves as one of Pakistan’s important gateways for vehicle trade.
It also handles a significant share of the country’s seaborne commerce.
The proposed automotive zone would sit along the Arabian Sea shipping corridor. This route connects South Asia with the Gulf and East Africa.
Therefore, the project could facilitate regional vehicle trade through its port-based location.
However, the proposed development will proceed according to market demand. Officials have indicated that the phased approach will allow the facility to expand accordingly.
Project Could Become a Model for Other Cities
Port Qasim Authority Chairman Rear Admiral (retd) Syed Moazzam Ilyas said the phased approach would allow expansion based on market demand.
He also indicated that the project could provide a model for similar automotive zones elsewhere in Pakistan.
The proposed 150-acre development would thus bring vehicle trade, refurbishment, displays, machinery and spare parts under one platform.
If implemented as planned, the zone could strengthen Pakistan’s automotive trade while supporting export-oriented activity from Port Qasim.
