The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has proposed that a used car Export Processing Zone (EPZ) be established at Karachi or Gwadar port for right and left hand drive vehicles. These vehicles may be allowed to be imported and then exported to other countries.
Because of its more feasible sea route to Africa and land route to Central Asian markets, cheap labour, painters and mechanics, the proposed EPZ may turn out to be more attractive than the EPZ in UAE.
FPCCI noted that the global warehousing market is more than US$1 trillion and is growing at a very fast pace. Pakistan should introduce exporter friendly policies and tax cuts to improve the exports of the country.
No importer can import goods, put them in the warehouse and re-export them after payment of import duty and taxes. They can re-export to mitigate their loss but cannot adopt it as a business to utilize cheap warehousing in Pakistan.
