Key Takeaways
- PAAPAM expresses concern over prolonged delay in finalizing new auto policy.
- The association warns that uncertainty is adversely affecting the automotive manufacturing ecosystem.
- PAAPAM calls for a focus on localization and technology upgradation to strengthen domestic industry.
The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has expressed deep concern over the prolonged delay in finalizing Pakistan’s new auto Industry Development Policy, warning that continued uncertainty is adversely affecting the country’s automotive manufacturing ecosystem. PAAPAM Chairman Usman Aslam Malik stated in a statement that the delay has created significant uncertainty among member industries, many of which are already facing considerable financial and operational challenges.
Malik highlighted that while the last two auto policies primarily focused on attracting new vehicle assemblers, this approach did not sufficiently promote localisation, indigenous engineering capabilities, or domestic technology development. As a result, he said, Pakistan’s local auto parts manufacturing ecosystem has weakened, risking erosion of its industrial base and increasing dependence on imported vehicles and components.
PAAPAM Chairman urged the government to adopt a policy direction centered on localization, technology upgradation, engineering capability enhancement, and employment generation. He emphasized that without this strategic shift, Pakistan risks becoming increasingly dependent on imports rather than strengthening domestic manufacturing. The PAAPAM chairman further called for a stable, long-term 10-year Auto Industry Development Policy that provides policy continuity, enhances investor confidence, and enables predictable industrial planning to support sustainable growth and industrial competitiveness.
Malik stated, 'The new Auto Industry Development Policy must prioritize the development and strengthening of Pakistan’s auto parts and components manufacturing base, which is the backbone of the country’s automotive value chain.' He added that without this strategic shift, Pakistan risks eroding its industrial base and becoming increasingly dependent on imported vehicles and components instead of strengthening domestic manufacturing.
PAAPAM's concerns reflect a broader industry sentiment regarding the need for clarity and stability in policy-making. The association believes that a well-crafted auto policy can not only boost local manufacturing but also create jobs and foster technological advancements within the sector. The delay, according to Malik, is causing significant distress among member companies who are already grappling with financial and operational challenges.
The PAAPAM chairman's call for a 10-year policy framework underscores the need for long-term planning and investment in the automotive industry. This approach, he argued, would provide the necessary continuity and predictability to attract investors and enable sustainable growth within the sector. The association is urging policymakers to take urgent action to finalize the new auto policy to address these concerns.
In conclusion, PAAPAM’s stance highlights the critical importance of a well-thought-out auto industry development policy for Pakistan's economic growth and industrial competitiveness. The delay in finalizing this policy continues to cast uncertainty over the future of the automotive manufacturing sector.
The new Auto Industry Development Policy must prioritize the development and strengthening of Pakistan’s auto parts and components manufacturing base, which is the backbone of the country’s automotive value chain.
Usman Aslam Malik, PAAPAM Chairman
