The Ministry of Commerce has updated the Import Policy Order 2022, allowing the import and re-export of military vehicles, helicopters, and related assemblies under the Federal Board of Revenue’s (FBR) Export Facilitation Scheme (EFS).
This amendment supports the import of equipment for manufacturing, repair, and value addition purposes, provided these items are re-exported in line with the conditions set by the EFS. It also allows the temporary import of used vehicles and chassis specifically for armoring or bulletproofing.
The change was approved in June 2025 by the Economic Coordination Committee (ECC) following a recommendation from the Special Investment Facilitation Council (SIFC).
In a significant shift, the responsibility for setting input-output ratios for defense technologies has been moved from the Export Development Board to a special committee under the Ministry of Defence Production.
The FBR will notify all relevant stakeholders, including the SIFC, once the implementation process is completed.
Our Opinion
Moving the responsibility for setting input-output ratios on defense technologies to a dedicated committee under the Ministry of Defence Production is a sensible acknowledgment that military equipment has different oversight needs than ordinary trade goods, and formalizing the armoring/bulletproofing import allowance closes a gap that manufacturers had likely been navigating informally. The real question is transparency — how these ratios are set and audited will matter more to the policy’s credibility than the reform itself.
