In a move aimed at supporting automotive-sector activity through regulated trade mechanisms, the Economic Coordination Committee (ECC) in Pakistan has approved a one-year pilot project permitting the temporary import of used vehicles and auto parts for repair, refurbishment and subsequent re-export, as part of amendments to the Import Policy Order 2022 and the Export Facilitation Scheme 2021 under the broader Import-Cum-Export framework.

The decision was taken during a meeting held on April 27th in Islamabad, chaired by Muhammad Aurangzeb, Federal Minister for Finance and Revenue.

According to the Commerce Division, the revised framework establishes a regulated mechanism for the controlled import of used vehicles and automotive components, aligning with international commitments. The scheme is designed to enable businesses within the automotive sector to process foreign vehicles locally through repair and refurbishment before re-export.

Under the pilot arrangement, imported vehicles and parts will not be permitted for open domestic sale and must be exported after value addition.

This condition ensures that the policy supports industrial activity such as vehicle reconditioning, component refurbishment and export-oriented manufacturing, without affecting the domestic automotive market.

Authorities have been directed to review the programme after one year to assess its effectiveness and determine whether permanent amendments to policy are required.

Officials stated that the initiative is intended to strengthen the automotive industry by promoting value-added services, supporting workshops and component suppliers, and facilitating the development of a structured vehicle refurbishment and re-export ecosystem under regulatory oversight.

Overall, the ECC's decision represents a targeted policy intervention aimed at enabling automotive-sector activity through regulated imports, local value addition and re-export, while maintaining oversight of domestic market conditions.