Pakistan is planning a major policy shift to allow export of refurbished used cars under its new auto policy 2026–31. The move aims to boost exports and attract foreign investment.
The proposal introduces an import-refurbishment-export model. Used vehicles will be imported, repaired locally, and then shipped to international markets.
Officials confirmed that these vehicles will not be allowed in the local market. The plan is designed only for export purposes.
The scheme is inspired by Dubai’s Jebel Ali model. It focuses on creating a strong automotive export system in Pakistan.
The Special Investment Facilitation Council is supporting the proposal. It sees the plan as a way to generate millions in export revenue.
The policy is currently under discussion with the International Monetary Fund. It will be presented to the federal cabinet after approval.
Under the draft policy, companies will get duty suspension benefits. These incentives will be offered through the Export Facilitation Scheme.
Only registered companies will be allowed to participate. Firms must show financial strength and technical capability.
Companies will also need approval from relevant ministries. Their facilities must meet standards set by the Engineering Development Board.
Vehicles imported under this scheme must be re-exported within nine months. Extensions may be granted only in special cases.
If companies fail to re-export vehicles on time, strict action will be taken by the Federal Board of Revenue.
Experts say this policy could help Pakistan enter the global automotive supply chain. It may also support economic growth through exports.