Karachi, February 4, 2025 – The Federal Board of Revenue (FBR) has announced a major step to support the construction, development, and operations of Gwadar Port and the Gwadar Free Zone Area by allowing the duty and tax-free import of vehicles by concession holders and their operating companies.
This initiative, aimed at facilitating key infrastructure projects in Gwadar, was formalized through the issuance of SRO 82(I)/2025.
The regulatory framework for this exemption 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. The move is part of the government’s broader strategy to boost economic activity and support development in the Gwadar region, which is central to Pakistan’s economic future.
Under the new rules, eligible importers must provide the FBR or any authorized officer with detailed information about the vehicles they intend to import. This is required to ensure that the vehicles are for the exclusive use of the construction, development, and operational needs of Gwadar Port and the Free Zone Area. The FBR or the designated officer will review the nature of the importer’s activities to verify the actual requirement of vehicles, as per the scope outlined in PCT Code 9917(3)(iii) of the Pakistan Customs Tariff.
Importantly, the FBR has also stipulated that vehicles already imported before the issuance of this regulatory mechanism will be regularized. This process aims to ensure that vehicles previously imported for the same purpose can be validated for their legitimate use, while also accounting for future requirements of the importers.
For operational vehicles, the FBR has set specific guidelines: each eligible importer can bring in a maximum of two motor cars up to 1600cc, three 4×4 pick-ups, and coasters or buses for workers, as determined by the Authority. These vehicles must meet the prescribed requirements for use in the development and operations of Gwadar Port.
To benefit from the duty and tax exemption under the regulations, importers must submit a Declaration Form signed by the CEO of the company, which must be certified by the Chairman of the Gwadar Port Authority. This certification confirms that the imported vehicles are genuine and necessary for the intended purposes in accordance with the defined quotas set by the Authority.
This move by the FBR is seen as a crucial step in facilitating the ongoing development of Gwadar, ensuring that the necessary infrastructure and transportation resources are in place for the region’s ambitious growth plans.