Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry has announced plans to establish an automotive processing zone on 150 acres at Port Qasim, with the facility to be expanded in phases according to market demand, the ministry said on Wednesday.

The decision was taken at a meeting attended by Port Qasim Authority Chairman Rear Admiral (Retd) Syed Moazzam Ilyas and members of the PQA board.

The proposed zone will comprise 264 operational units across five specialised segments, including 30 commercial units, 84 refurbishment workshops, 60 car display units, 20 machinery yards and 70 auto spare-parts units. The facility will be developed within the Port Qasim industrial corridor, providing direct access to the port and reducing inland logistics requirements.

The project envisages Pakistan’s first dedicated Import-Refurbishment-Export (AIRE) framework for the automotive sector.

Project proponents estimate the AIRE Park could generate an annual net foreign exchange surplus of around $200 million, based on estimated exports of $500 million. The facility is expected to support automotive businesses by bringing commercial activities, refurbishment facilities, vehicle displays and spare-parts suppliers into a single port-based ecosystem.