Karachi: Pakistan plans to establish a dedicated automotive processing zone on 150 acres at Port Qasim, Karachi, with the project to be expanded in phases based on market demand. Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry announced the plan at a meeting attended by Port Qasim Authority (PQA) Chairman Rear Admiral (Retd) Syed Moazzam Ilyas and members of the PQA Board.
The proposed facility, to be developed within the Port Qasim industrial corridor, will provide direct access to the port and is intended to reduce inland logistics requirements for imported and exported vehicles. The project is being planned as Pakistan’s first dedicated Import-Refurbishment-Export (AIRE) framework for the automotive sector. It is designed to bring vehicle import, refurbishment, display and export activities into an integrated port-based ecosystem.
Read: Pak, China explore ‘Steel-to-Green Sea’ maritime project at Port Qasim
The first phase will comprise 264 operational units across five specialised segments:
- 30 commercial units
- 84 refurbishment workshops
- 60 car display units
- 20 machinery yards
- 70 auto spare-parts units
According to project estimates, the AIRE Park could generate an annual net foreign exchange surplus of around USD 200 million, based on projected exports of approximately USD 500 million. The facility is also expected to support automotive businesses by bringing refurbishment workshops, machinery yards, vehicle displays, commercial facilities and spare-parts suppliers together at a single location.
The proposed zone’s location along the Arabian Sea shipping corridor could also facilitate vehicle trade between South Asia, the Gulf and East Africa. The minister said the project would be expanded in phases after completion of the first phase, allowing its capacity to grow in line with market demand.
PQA Chairman Syed Moazzam Ilyas said the phased approach would allow the project to respond to market requirements and could serve as a model for similar automotive zones elsewhere in Pakistan.