Pakistan to establish automotive processing zone

Pakistan plans to establish an automotive processing zone on 150 acres at Port Qasim, in a move aimed at boosting vehicle trade, refurbishment and exports.

Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry announced this at a meeting with Port Qasim Authority (PQA) Chairman Rear Admiral (retd) Syed Moazzam Ilyas and members of the PQA Board.

The proposed facility will be developed in phase manner, with future expansion linked to market demand.

The federal minister said the first phase is expected to include 264 operational units across five specialized segments: 30 commercial units, 84 refurbishment workshops, 60 vehicle display units, 20 machinery yards and 70 auto spare-parts units.

The zone will be located within the Port Qasim industrial corridor, giving businesses direct access to the port and potentially reducing inland transport and logistics costs for imported and exported vehicles.

According to the project concept, the facility will be developed within the Port Qasim industrial corridor, providing direct access to the port and reducing inland logistics requirements for imported and exported vehicles.

The proposed facility is aimed at creating an integrated platform for vehicle import, refurbishment, display and export. The project envisages Pakistan’s first dedicated Import-Refurbishment-Export (AIRE) framework for the automotive sector.

Port Qasim’s strategic location has been identified as a key advantage for the project. The port is one of Pakistan’s major gateways for vehicle trade and handles a significant share of the country’s seaborne commerce.

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 in exports.

The facility is also expected to support automotive businesses by bringing commercial activities, refurbishment facilities, machinery yards, vehicle displays and spare-parts suppliers into a single port-based ecosystem.

The proposed zone would be located along the Arabian Sea shipping corridor connecting South Asia with the Gulf and East Africa, potentially facilitating regional vehicle trade.

Chairman, Port Qasim Authority Rear Admiral (Retd) Syed Moazzam Ilyas said the phased approach would allow the project to expand according to market demand and could provide a model for establishing similar automotive zones elsewhere in the country.