ISLAMABAD: The government is taking steps to bolster the country’s industrial base and has called upon the auto sector to become more competitive, stated Haroon Akhtar, the Special Assistant to the Prime Minister (SAPM) on Industries and Production.

Addressing the Auto Parts Summit 2025, organised by the Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam), Mr Akhtar outlined a vision for a thriving domestic automotive industry.

“The new tariff policy coupled with a new industrial policy and regulatory reforms, along with the plan to revive certain sick industries such as the steel mills, will prove that the future of Pakistan’s automotive industry is bright,” he said. He assured local manufacturers that the government would stand by them, adding, “But we want you to be competitive, and we will help you.”

In a move to level the playing field, the SAPM assured auto parts makers that quality standards applicable to local manufacturing will also be strictly implemented on imported parts and vehicles.

However, industry stakeholders voiced significant concerns over government policies they see as detrimental to local enterprise. Paapam Chairman Usman Malik highlighted the challenges posed by the commercial import of used cars, arguing it undermines the local industry.

Local parts makers decry used car imports

He pointed out the apparent contradiction in the government’s approach, which promotes an environmentally friendly electric vehicle policy while simultaneously allowing the import of used petrol and diesel engine cars.

Mr Malik warned that such imports threaten to “destroy” local auto parts manufacturers, who currently supply 70pc of parts for cars and 90pc for motorcycles. He stressed that this would also negatively impact local employment.

Despite these challenges, the domestic auto parts industry demonstrates considerable potential, with annual exports reaching around $200 million, according to Mr Malik. He noted that these locally manufactured parts adhere to international safety standards, and that Pakistan’s Millat Tractors are being exported to the US.

Published in Dawn, August 21st, 2025