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August 12, 2026 — Karachi: Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry has announced plans to establish a 150-acre automotive processing zone at Port Qasim.
The project will be developed in phases. Future expansion will depend on market demand.
The announcement came during a meeting with Port Qasim Authority (PQA) Chairman Rear Admiral (Retd) Syed Moazzam Ilyas and members of the PQA Board.
The proposed zone will have 264 operational units. These will include 30 commercial units, 84 refurbishment workshops, 60 car display units, 20 machinery yards and 70 auto spare-parts units.
The facility will be built within the Port Qasim industrial corridor. Its location will provide direct access to the port. As a result, businesses could reduce inland transport and logistics costs for imported and exported vehicles.
The project aims to create a single platform for vehicle imports, refurbishment, display and exports. It will also introduce Pakistan’s first dedicated Import-Refurbishment-Export (AIRE) framework for the automotive sector.
Port Qasim’s location gives the project an additional advantage. The port is a major gateway for vehicle trade and handles a significant share of Pakistan’s sea-based commerce.
According to project estimates, the proposed AIRE Park could generate around $200 million in annual net foreign exchange. The project also targets exports worth about $500 million.
The zone will bring several automotive businesses under one roof. These will include refurbishment facilities, machinery yards, vehicle display centers and spare-parts suppliers.
The facility could also support regional vehicle trade. Its location along the Arabian Sea shipping route connects South Asia with the Gulf and East Africa.
PQA Chairman Rear Admiral (Retd) Syed Moazzam Ilyas said the phased approach would allow the project to grow with market demand. He added that the initiative could become a model for similar automotive zones in other parts of Pakistan.
