PAAPAM concerned over IMF’s recent push for trade liberalisation

LAHORE: The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has expressed strong concerns over the IMF’s recent push for trade liberalisation, particularly proposals to reduce tariff protections and allow commercial imports of used vehicles.

While supporting Pakistan’s goals of economic efficiency and environmental sustainability, PAAPAM cautioned that these measures could undermine the domestic auto industry, threaten jobs, and erode investor confidence.

“Trade liberalisation must not come at the cost of deindustrialisation and fiscal leakage,” said Usman Aslam Malik, Chairman PAAPAM.

The association warned that large-scale imports of used vehicles—often failing modern safety and emissions standards — could derail Pakistan’s efforts to localize new energy vehicle (NEV) production. PAAPAM called for clarity on how such imports align with national sustainability and industrial goals.

It also questioned whether liberalisation applies broadly across sectors or selectively targets automotive. If limited to vehicles, PAAPAM urged policymakers to explain the rationale and outline safeguards against market distortions. The PAAPAM flagged vulnerabilities in current import schemes, where vehicles brought in under overseas Pakistanis’ names are sold domestically, bypassing tax and regulatory oversight. Informal payment channels like hundi facilitate capital flight and compromise fiscal transparency.

Copyright Business Recorder, 2025