Pakistan to establish 150-acre facility at Port Qasim for vehicle refurbishment, re-export
KARACHI: Pakistan plans to establish a 150-acre facility at Port Qasim to import, refurbish and re-export used vehicles, the country’s maritime affairs ministry said on Wednesday.
The land allocation is the first phase of what the ministry described as an Auto Import-Refurbishment-Export (AIRE) park, a walled-off facility where imported vehicles would be repaired to export standards and shipped out again without entering Pakistan’s domestic market.
Once established, it will comprise 264 operational units across five specialized segments, including 30 commercial units, 84 refurbishment workshops, 60 car display units, 20 machinery yards and 70 auto spare-parts units. The auto zone will be expanded in phases, enabling the project to grow in line with market demand.
The facility will provide direct access to Port Qasim, one of Pakistan’s major gateways for vehicle trade that handles a significant share of the country’s seaborne commerce, and reduce inland logistics requirements for imported and exported vehicles, according to the maritime affairs ministry.
“The proposed facility is aimed at creating an integrated platform for vehicle import, refurbishment, display and export,” Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry was quoted as saying by his ministry.
“The project proponents estimate that the AIRE Park could generate an annual net foreign exchange surplus of around $200 million, based on an estimated $500m exports.”
The ministry did not specify a timeline for the establishment of the facility.
The development follows a decision by the Economic Coordination Committee in April, permitting temporary import of used vehicles and auto parts for repair and subsequent re-export under a pilot project, backed by the Special Investment Facilitation Council.
Officials at the time said that every vehicle brought in under the scheme must be exported, and none may be sold locally. The framework was described as drawing on Dubai’s Jebel Ali model, where used cars are imported, brought up to international standards and re-exported without ever being registered for use in the UAE.
It is the latest in a series of development plans announced for Port Qasim this year. In January, the maritime affairs ministry unveiled a 50-year master plan for major industrial expansion at Port Qasim, according to local media reports. Separately, about $2 billion in investment from China, Qatar, Turkiye and the UAE is expected at the port over the next 30 years, including a $250 million dredging project now in its first phase.