LAHORE: The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has raised concerns over reports that the draft Automobile and Auto Parts Manufacturing Policy (2026-31) is being forwarded to the International Monetary Fund (IMF) without meaningful consultation with the Engineering Development Board (EDB), PAAPAM or other key industry stakeholders.
PAAPAM Chairperson Usman Aslam Malik said the move had triggered alarm across the auto parts manufacturing ecosystem, which supports more than one million livelihoods and underpins the country’s engineering base. He noted that over 300,000 workers are directly employed in machining, tooling, moulding, forging, casting and assembly, while a further 700,000 depend on logistics, raw materials, aftermarket distribution and engineering services. Any weakening of the sector, he said, would affect employment and industrial stability.
Senior Vice Chairman Shehryar Qadir warned that applying the National Tariff Policy uniformly to the auto sector, without safeguards, could reverse four decades of localisation, undermine billions of rupees invested by domestic vendors, shrink the supplier base and erode industrial self-reliance. He added that the auto industry is a technology-intensive ecosystem rather than a trading sector and requires a tailored policy framework.
Both officials acknowledged what they described as the constructive role of the special assistant to the prime minister on the Ministry of Industries and Production, citing efforts to promote consultation and transparency. They said this approach should guide the finalisation of the Auto Policy 2026-31.
PAAPAM said the sector supplies not only automotive original equipment manufacturers but also agriculture, motorcycles, commercial vehicles, appliances and defence engineering, while contributing to foreign exchange earnings through exports. The association urged the government to pause submission of the draft policy to the IMF, re-engage with stakeholders, protect localised parts through tariff differentiation, and adopt a balanced, export-oriented framework.
