Pakistan has approved a new policy aimed at developing an export-focused vehicle refurbishment industry after the Economic Coordination Committee (ECC) gave the green light to a framework for importing, refurbishing, and re-exporting used vehicles and auto parts.
The initiative is expected to open new investment opportunities in the automotive sector while helping the country increase exports and create jobs.
Under the approved model, companies certified by the Engineering Development Board (EDB) will be allowed to import used vehicles and components strictly for refurbishment and export purposes. The policy clearly prohibits the sale of imported vehicles in Pakistan’s local market, ensuring that the scheme remains fully export-oriented.
Government officials estimate that the project could attract initial investments between $20 million and $30 million, with the potential to grow into a much larger industry worth nearly $300 million over time.
The proposal had been under discussion since 2023 but faced delays due to coordination issues among multiple government departments, including the Ministry of Commerce, Ministry of Industries and Production, Federal Board of Revenue (FBR), and EDB. Progress reportedly accelerated after the Special Investment Facilitation Council (SIFC) helped align import and export regulations earlier this year.
Authorities say the framework has been designed using successful international examples such as Dubai’s Jebel Ali refurbishment and re-export model, which serves as a major regional hub for used vehicles.
The initiative has also been included in Pakistan’s upcoming Auto Policy 2026–31 as part of broader efforts to position the country within the global automotive supply and refurbishment chain.
Officials believe the project could support export earnings, encourage foreign and local investment, and generate employment opportunities in technical and industrial sectors linked to vehicle refurbishment and auto parts handling.
The success of the policy, however, will depend on effective implementation, regulatory oversight, and the ability to attract long-term investors into the sector.