Govt Requests Exemption for 45 Bulletproof Cars From Vehicle Ban

The Federal Government has requested exemption to buy new vehicles from recently imposed ban in order to procure forty five bulletproof vehicles for the next Shanghai Cooperation Organisation (SCO) Council of Heads of State Summit in Pakistan.

The request follows new austerity measures the government has implemented recently, including the complete ban on buying new cars. This exemption is requested in the context of security and logistical arrangements for the forthcoming summit of the SCO in September 2027 Pakistan will host. 

The development has attracted interest because the government is trying to both curb public expenditure and lower fuel and vehicle expenses as part of its austerity measures.

Government Seeks Special Exemption for SCO Vehicles

The Cabinet Division had originally asked to be authorised to buy 65 bulletproof vehicles for the summit. However, the Prime Minister Shehbaz Sharif sanctioned the procurement of 45 vehicles instead of the number requested. 

The procurement comes after the Economic Coordination Committee (ECC) had already approved the procurement of an initial batch of vehicles.

The ECC has approved a technical supplementary grant of Rs 6.6 billion for procurement of 30 bulletproof vehicles for the summit of the SCO on 7 September. The cars were revealed to be Mercedes-Benz-Maybach S680 Guard (VR10) cars for VVIP security considerations. 

The Cabinet Division subsequently came back to the ECC with further requirements, following an examination of the sumpits' security and logistical demands.

Why Are New Vehicles Being Requested Despite the Ban?

The government has justified the procurement in the name of the security.

The newest bulletproof vehicles offered to the department are from as far back as 2016, the Cabinet Division said, and are not up to the standards needed to host heads of state and other international dignitaries.

The 45 vehicles were calculated based on the need and are the minimum number it felt it could have, the government said. 

The Cabinet Division also stated that the purchase would only be for bulletproof vehicles. About 300 other non-bulletproof vehicles are estimated to be rented and not bought, for use in summit-related transportation. 

This distinction is to reduce the number of permanent vehicles used, and to provide high-level security arrangements for visiting delegations.

Vehicle Purchase Ban Remains in Place

The exemption is not a blanket exception for the sale of autos.

The government has recently implemented austerity measures as part of a measures to conserve resources and control expenditure. The restrictions include no new vehicle purchases, which in this instance could be granted for a specific need including development projects as well as security arrangements for an international summit. 

The exemption sought would thus only be for the bulletproof vehicles used for the SCO event.

In the case of the wider government fleet, the procurement ban continues to apply, unless the individual exemptions are granted.

Additional Tax and Duty Exemption Also Under Discussion

There is one other financial factor with the procurement apart from the vehicle itself.

The ECC has instructed the Cabinet Division to make a case for exemption from the applicable duties and taxes under the Customs Act 1969, Sales Tax Act 1990 and Federal Excise Act 2005. 

But this is not to be seen as a universal tax exemption that had already been approved.

The Federal Board of Revenue (FBR) has also clarified that it has not issued any SRO to export/import bulletproof vehicles duty & tax free. The Federal Cabinet approved such a facility in 2019, but FBR did not mention any notification that has been released yet for that. 

So any exemption linked to the new SCO procurement would need to be accompanied with the necessary authorisations and legal papers.

Special Rules Apply to Bulletproof Vehicles

There are existing regulations in place in Pakistan for the importation and operation of armoured and bulletproof vehicles.

According to the Trade Information Portal of Pakistan, an NOC issued by the Ministry of Interior is necessary to import bullet proof vehicles. This is done by checking documents, security clearance and approval from the appropriate authorities prior to customs clearance. 

The rules also include vehicles purchased locally and armoured, and require documentation related to the intended purpose.

This is applicable especially for the government's planned procurement since vehicles will be used for the protection and transportation of foreign heads of state and other high level officials.

What Is the Estimated Cost?

The government's official ECC statement indicates that the first 30 vehicles have been allotted Rs6.6 billion. 

There was a need for an additional 15 vehicles, for which the cost was reported at Rs3 billion. This would take the total reported requirement for 45 vehicles to approximately Rs9.6 billion but could vary based on the procurement arrangements, specification, taxes and other associated costs. 

The figures also go to show the reason the procurement has made the news, especially as the government is taking action to cut back on spending for unnecessary things.

Why the SCO Summit Requires Special Arrangements

The Pakistan Summit of the Council of Heads of State of the Shanghai Cooperation Organization held in September 2027 in Islamabad.

The summit drawed the leadership from the member countries of the SCO. The government has thus claimed that the same procedures would be followed as with visits by foreign heads of state and other international officials, for transportation and security measures.

Several government forums were held before the number of vehicles was finalised where the security requirement was considered. 

The government also said the overall security situation in Pakistan needed greater protection in vehicles.

What Happens Next?

The call for additional administrative and financial procedures remains in the government's requests.

The additional vehicles have been approved at the appropriate level and the exemption from the more extensive ban on vehicle purchases and duties and taxes should be subject to the appropriate approval process.

The FBR's clarification further indicates that any claims that the vehicles are already duty free would be premature. 

The planned procurement is currently being promoted as an exception to the government's overall vehicle purchase ban for safety reasons.

Conclusion

The federal government has asked for an exception to its new vehicle purchase ban to order 45 bullet proof taxi for security and transportation arrangements for Pakistan's hosting of the 2027 SCO Summit.

The procurement comes after an earlier ECC nod for Rs6.6 billion worth of 30 vehicles, and a subsequent nod for an additional 15 vehicles, which had been identified as additional requirements. 

The government has stated the vehicles are required as their current bulletproof vehicles were purchased in 2016 but the vehicles are being sought at a time when austerity measures are limiting government car purchases.

The issue of duty and tax exemption is separate and FBR has stated that there is no new SRO issued which provides a duty-free import facility for bullet proof vehicles. 

With the 2027 SCO Summit in the making, the procurement and its attendant exemptions will continue to be a significant part of the government's spending and automotive policy agenda in Pakistan.