ISLAMABAD: The Special Investment Facilitation Council has proposed introducing an import-refurbishment-export (IRE) model for used vehicles in Pakistan, aiming to enhance export potential and strengthen the auto sector. The proposal, inspired by Jebel Ali, forms part of the draft Auto Policy for 2026–31.
According to official sources, the government forwarded the plan in the aftermath of the Gulf War, highlighting its potential to generate significant business opportunities. The policy remains under discussion with the International Monetary Fund and will be presented to the federal cabinet after finalization.
Under the proposed framework, Pakistan will allow licensed companies to import used vehicles, refurbish them locally, and re-export them to international markets. The scheme will operate under the Export Facilitation Scheme (EFS) and the Import Policy Order 2022, offering duty suspension incentives to encourage participation and investment.
Moreover, the initiative seeks to establish a formal industry for vehicle refurbishment, enabling Pakistan to integrate into the global automotive value chain. Officials stated that the model could attract investment in specialized facilities and generate export revenues at a time when the country is striving to meet export targets.
To ensure compliance, only registered companies with adequate financial and technical capacity will qualify for the scheme. Firms must secure approvals from the Ministry of Commerce and Industries and demonstrate infrastructure verified by the Engineering Development Board.
Additionally, vehicles imported under the IRE mechanism must be re-exported within nine months. Authorities may grant limited extensions under exceptional circumstances; however, failure to comply will lead to regulatory action by the Federal Board of Revenue.
Overall, policymakers view the initiative as a strategic step toward industrial growth and export diversification.
