Government Initiatives to Revitalize the Automotive Sector

Islamabad is actively pursuing strategies to strengthen Pakistan’s industrial base, with a particular focus on enhancing the competitiveness of the automotive sector. Haroon akhtar, Special Assistant⁤ to the Prime minister (SAPM) ⁢on Industries and production, outlined a ⁢vision for a thriving domestic automotive industry at the Auto Parts ⁢Summit‍ 2025, organized by the Pakistan Association of⁣ Automotive Parts and Accessories Manufacturers (Paapam).

akhtar emphasized that a combination of factors – including a new tariff policy,⁢ broader industrial reforms, and plans to revitalize struggling industries like steel mills – will pave the way for a⁣ brighter future for Pakistan’s automotive⁢ industry. He assured local manufacturers of the government’s support, stating a commitment to helping ⁣them become more competitive.

A key component of this support involves ensuring a level playing field. the SAPM ⁣affirmed that the same quality standards applied to locally manufactured parts will also be rigorously enforced on imported components and vehicles.

Industry⁤ Voices Concerns ⁤Over Used Car Imports

Despite the government’s ⁤optimistic outlook, stakeholders within the automotive ⁢industry have expressed significant reservations about certain policies. Paapam‍ chairman⁢ Usman Malik voiced strong concerns regarding the commercial import of used cars, arguing⁣ that it directly undermines⁣ the local manufacturing base.

Local parts makers decry used car imports

Malik highlighted what he perceives as a contradiction⁣ in the ⁣government’s approach: promoting an environmentally friendly electric vehicle⁢ (EV) policy while together allowing the import of older, petrol and diesel-powered vehicles.This inconsistency, he argues, creates an uneven playing field and jeopardizes the ⁣progress made towards lasting ‍transportation.

The potential consequences of continued used car imports are severe, Malik warned. He stated that these imports threaten to “destroy” local auto parts manufacturers, who currently supply 70% of ⁢the parts⁣ used in car production and a ample⁣ 90% of motorcycle components. This disruption would inevitably lead to ‍job losses and economic instability within the sector.

A Sector with Export Potential

Despite the challenges,⁣ the domestic auto parts industry demonstrates considerable potential. according to ⁤Malik, annual exports currently reach approximately $200 million. These ‍locally manufactured parts meet stringent international safety⁢ standards, ⁣evidenced by the export success of companies like Millat ⁣Tractors, which currently ⁢ships products to the United ⁣States.