Karachi, February 4, 2025 – In a significant development aimed at fostering economic growth and supporting key infrastructure projects in the region, the Federal Board of Revenue (FBR) has unveiled a new initiative allowing the duty and tax-free import of vehicles for the construction, development, and operations of Gwadar Port and the adjacent Gwadar Free Zone Area. This move is part of the government’s broader strategy to enhance economic activity in the strategically important Gwadar region, which is poised to play a central role in Pakistan’s economic future.
The new scheme was formalized through the issuance of SRO 82(I)/2025, which outlines the regulatory framework for the import of vehicles by concession holders and their operating companies. The framework is titled the Import of Vehicles by the Concession Holders and their Operating Companies for Construction, Development, and Operations of Gwadar Port and Gwadar Free Zone Area Rules, 2025. By exempting these vehicles from duties and taxes, the government aims to facilitate critical development projects in Gwadar, a key hub under the China-Pakistan Economic Corridor (CPEC) initiative.
The FBR’s decision is expected to streamline the import process for vehicles required for ongoing and future infrastructure projects in the region, ensuring that the operational needs of Gwadar Port and the Free Zone Area are met without unnecessary financial burden. The new rules specify that only those vehicles directly linked to the construction, development, and operational requirements of the area are eligible for duty-free importation.
Under the newly established guidelines, eligible importers must submit detailed information about the vehicles they wish to import to the FBR or an authorized officer. This step is crucial to verify that the vehicles are intended for use in the development and operations of Gwadar Port, in line with the scope outlined in PCT Code 9917(3)(iii) of the Pakistan Customs Tariff. The FBR or its designated officer will assess the nature of the importer’s activities to confirm that the vehicles meet the necessary criteria.
An important aspect of the scheme is that it also allows for the regularization of vehicles that have already been imported before the formalization of this regulatory mechanism. This provision is designed to ensure that vehicles imported for similar purposes in the past are validated for their legitimate use, ensuring continuity in the development process.
For operational purposes, the FBR has set clear guidelines regarding the types and number of vehicles eligible for import under the duty-free scheme. Each eligible importer is allowed to bring in a maximum of two motor cars (up to 1600cc), three 4×4 pick-ups, and buses or coasters for worker transport. The exact number and type of vehicles are determined by the Gwadar Port Authority, ensuring that only those vehicles necessary for the construction and operational needs of the port are imported.
To benefit from the exemption, importers must submit a Declaration Form signed by the CEO of the importing company. This form must be certified by the Chairman of the Gwadar Port Authority, who will confirm that the imported vehicles are genuine and necessary for the planned activities in accordance with the established quotas.
This move by the FBR is seen as a significant step in boosting the development of Gwadar, which is central to Pakistan’s economic vision. The region, home to the strategically vital Gwadar Port, is expected to become a key center for trade and commerce once its infrastructure and operations are fully realized. By facilitating the importation of vehicles needed for development and operations, the FBR hopes to reduce operational costs and accelerate progress, contributing to the overall success of the Gwadar Free Zone and the wider CPEC initiative.
The duty-free vehicle import scheme is part of Pakistan’s broader efforts to enhance its economic standing through strategic development projects, and the government’s focus on Gwadar underscores the importance of this region in shaping the country’s future economic landscape.