PAMA concerned at proposed ‘motor vehicle development act’

ISLAMABAD: The Pakistan Automotive Manufacturers Association (PAMA) has expressed serious concern over the proposed “Motor Vehicle Development Act” and claimed that it may hinder documented businesses while leaving the unorganised sector unchecked.

In a letter to the Federal Secretary Ministry of Industries, PAMA’s director general Abdul Waheed Khan said he recently learned about the proposed ‘Motor Vehicle Development Act 2025’, following a meeting on August 23, 2025.

He said their association was not consulted before the drafting of the act. “We find the draft unacceptable, especially the proposed criminalisation of industrial activities that would be looked into by the Federal Investigation Agency,” he remarked.

In a meeting on September 5, chaired by the Additional Secretary, we were allowed to submit written comments before the National Assembly’s Standing Committee meeting on September 9, he said.

The industry is concerned about the necessity of this law, as it seemingly criminalises the manufacturing and trading activities without clear justification, and the involvement of the FIA in these matters is troubling. He said this law also fails to enhance consumer protection beyond the Auto Policy 2021-26.

Abdul Waheed said the law grants extensive powers to the EDB, affecting areas governed by other ministries. He was of the view that inputs from the Ministry of Science and Technology, the Ministry of Climate Change, and the Federal Board of Revenue are essential. “The industry is shocked. It wonders if there is any need to have such a law in the first place. What wrongdoings have been done, forming the basis of criminalisation of the manufacturing and trading activities in the country? So much so, enforcing the provisions in question through the FIA means that the authorities are seemingly clubbing the industrialists with the hardened criminals,” he lamented.

DG PAMA said the law in question appears to be unfair and unrepresentative by just focusing on vehicle safety, while completely ignoring other important safety aspects like developing safe road infrastructure, improving road safety laws, and ensuring adherence to safety rules, hence creating unjust offences that lead to unwarranted imprisonment and penalties deposited into the EDB fund.

It neither contributes to the development of the industry nor secures consumer interests beyond what is already provided under the current auto policy. There seems to be no consultation with provincial authorities. The introduction of unnecessary controls undermines manufacturing and business operations, deterring existing and future investment in the auto sector. We urge the Ministry of Industries to put on hold the law for appropriate scrutiny of administrative aspects, excluding the unacceptable provisions regarding the criminalisation of auto makers, he concluded.

Copyright Business Recorder, 2025