Policy revised to allow import, re-export of defence vehicles, helicopters, and assemblies by state-owned entities

The Ministry of Commerce (MoC) has amended the Import Policy Order (IPO) 2022, permitting the import and subsequent re-export of defence-related vehicles, helicopters, and assemblies by state-owned defence entities and their wholly-owned commercial subsidiaries, according to a news report. 

In line with the new policy, the Ministry of Commerce issued SRO 118, which modifies several provisions in the IPO 2022. Notably, the amendment allows state-owned defence production entities (DPEs) and their commercial subsidiaries, registered under the Export Facilitation Scheme (EFS) of the Federal Board of Revenue (FBR), to import and re-export items for manufacturing, maintenance, and value addition purposes.

The changes also include provisions for the temporary import of used vehicles or vehicle chassis for armouring or bulletproofing, which can be re-exported following approval from the Defence Production Division and the Interior and Narcotics Control Division.

The Economic Coordination Committee (ECC) approved the proposal in June 2025, following a recommendation from the Special Investment Facilitation Council (SIFC). The SIFC had requested the amendment to enhance export potential in the defence sector.

Additionally, the amendment waives the requirement for determining Input-Output Ratios (IORS) for defence-related technologies through the Export Development Board (EDB), instead allowing a committee formed by the Ministry of Defence Production (MoDP) to make such determinations.

The FBR will share the updated notification with all relevant stakeholders, including SIFC, once finalized. The amendment is part of a broader effort to streamline procedures for defence sector exports under the Export Facilitation Scheme.