PAAPAM concerned at proposed National Tariff Policy 2025-30

LAHORE: The Pakistan Association of Auto Parts Manufacturers (PAAPAM) convened an extraordinary general meeting to discuss the government’s proposed National Tariff Policy 2025–30. Members expressed grave concerns over the policy’s anticipated negative impact on the auto parts manufacturing sector, warning that its implementation could lead to widespread industry closures and severe job losses.

The PAAPAM leadership briefed members on a series of meetings held with the Ministry of Industries and Production (MOIP) and the Engineering Development Board (EDB) to highlight the damaging effects of the tariff rationalisation. The members condemned the unilateral acceptance of recommendations from IMF Consultants, reiterating that such a move fails to account for the fundamental role of the auto parts sector in supplying components to Pakistan’s local OEMs—supporting the production of cars, tractors, motorcycles, trucks, buses, and defense/railway equipment.

Industry stakeholders emphasised that the proposed tariff reduction would shift Pakistan’s economy towards imports rather than local industrialization, deepening reliance on foreign products and depleting the country’s already limited foreign exchange reserves. They warned that this policy threatens economic stability, as the financial resources needed for industrial growth will instead be drained by excessive imports.

Furthermore, the PAAPAM members highlighted that the auto parts industry serves as a critical training ground for human resource development, equipping skilled workers with engineering and industrial expertise. These trained professionals often secure overseas employment, contributing to national remittances and global workforce competitiveness. The closure of domestic industries due to the tariff change would effectively halt this human resource development pipeline, leading to a shortage of skilled labor and restricting opportunities for Pakistan’s workforce in international markets.

“We urged the government to adopt a strategic and structured approach to tariff adjustments instead of implementing abrupt changes that destabilize the industry,” said PAAPAM Chairman Usman Aslam Malik. “The livelihoods of thousands of skilled workers and the long-term sustainability of Pakistan’s industrial sector depend on a policy that nurtures local manufacturing rather than exposing it to unfair competition from imports.”

Echoing this sentiment, PAAPAM Senior Vice Chairman Shehryar Qadir emphasised the critical need for an inclusive and well-informed policy framework. “Pakistan’s auto parts industry has worked tirelessly to enhance quality, innovation, and efficiency,” he stated.

“A sudden tariff reduction would undo decades of progress and place local manufacturers at an unfair disadvantage against international suppliers. The government must prioritize industrial sustainability through policies that foster growth rather than hinder it.”

The PAAPAM remains committed to constructive engagement with policymakers to ensure an industrial framework that supports local manufacturers, preserves jobs, and strengthens Pakistan’s economic resilience.

The association calls for establishing a balanced and sustainable tariff structure after consultation with industry stakeholders.

Copyright Business Recorder, 2025