New Auto Policy Worries Car Industry

The Pakistan Automotive Manufacturers Association (PAMA) has urged the government to share the draft of the proposed Auto Policy with the industry as soon as possible, ideally before it is submitted to the Prime Minister for approval. The industry is wary of rumors and reports suggesting the draft is already prepared and may be presented to the Prime Minister soon.

PAMA fears the policy could impose harsh penalties, such as increased tariffs and license revocation, if manufacturers fail to meet ambitious export goals. PAMA Director General Razi ur Rahman emphasized that while boosting exports is crucial, achieving these targets should be facilitated through incentives, support, and a stable policy framework rather than punitive actions against the automotive sector.

The industry pledges to collaborate with the Ministry of Industries and Production and the Engineering Development Board to craft an Auto Policy that bolsters domestic production, encourages investment and localization, and positions Pakistan as a competitive automotive manufacturing and export hub. Rahman noted that export growth demands investments in technology, product innovation, localization, economies of scale, international certifications, market development, and the construction of robust supply chains.

He underscored that manufacturers face external constraints like global market dynamics, currency fluctuations, trade agreements, logistics, and the overall business climate when pursuing export targets. Rahman stressed that the Auto Policy should offer a consistent, clear, and participatory framework with attainable goals, alongside incentives for manufacturers and suppliers to invest in exports and international competitiveness.

He expressed hope that the draft Auto Policy would be accessible to the industry for review and discussion before final approval. Rahman suggested that open consultation would enable the sector to offer constructive and informed input, aiding the creation of an ambitious yet workable policy.