ISLAMABAD: Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), Tuesday, expressing serious concerns over the continued commercial import of used cars said the activity will destroy local industry producing almost 70 percent parts for cars and 90 percent for motorcycles as well as directly employing nearly two million people.
Addressing the Auto Parts Summit organised by the PAAPAM, Usman Malik, chairman PAAPAM, while requesting the government to protect the local industry, said that developed countries are protecting their auto industries and even the United States of America is saving its industry through tariffs.
Speaking on the occasion, Special Advisor to the Prime Minister (SAPM) on Ministry of Industries and Production Haroon Akhtar Khan as the chief guest said that the government was determined to drive industrialisation through policies, specifically to make local auto parts manufacturers (APMs) globally competitive.
He said that Pakistan today stands at a crossroads and possessed the human capital, strategic location, and natural resources that successful nations leveraged during their industrial transformations. He said Pakistan under the current leadership has the political will to implement forward-thinking industrial policies that prioritise manufacturing, attract foreign investment, and position Pakistani products competitively in global supply chains.
He added that more than 1,200 local auto parts manufacturers are contributing three percent to the GDP, while this industry is also creating two million employment opportunities. The SAPM said that, on the special instructions of the prime minister, the local auto parts manufacturing industry will be made competitive at the international level. He asked industrialists to invest in the latest technology and research as this is the way to make Pakistan an auto hub in collaboration with the government.
PAAPAM Chairman Usman Malik argued against the government for frequently changing policies, as it is implementing an environmentally friendly electric vehicle policy while, on the other hand, allowing the commercial import of diesel and petrol engine used cars.
“Our policymakers are moving in the opposite direction to destroy the local auto parts manufacturing industry, and it is really difficult to revive once the industry is damaged. At present, many CKD operators are merely assembling imported parts rather than truly supporting local manufacturing,” said Usman.
The chairman PAAPAM informed that the local auto parts industry is exporting $200 million worth of parts every year, which are made locally as per international safety standards, while Pakistan’s Millat Tractors are also being exported to the USA.
Copyright Business Recorder, 2025
