Proposed Auto Policy: PAMA asks Secy I&P to share draft before finalisation

KARACHI: The Pakistan Automotive Manufacturers Association (PAMA) has asked the secretary, Industries & Production, to take the industry on board and share the draft of the proposed Auto Policy before it is finalised.

In response to reports that a draft of the new policy, which has been prepared and may soon go to the Prime Minister for approval, could impose punitive measures on manufacturers, including incremental tariffs and even cancellation of manufacturing licenses, if steep export targets are not met.

“While the industry fully recognises the importance of increasing exports, developing Pakistan’s automotive export capability and enhancing the sector’s contribution to the country’s foreign exchange earnings, such objectives would be better achieved through appropriate incentives, facilitation and a predictable policy framework rather than through punitive measures against the industry,” said PAMA Director General Razi ur Rahman.

He said the industry remains committed to working closely with the Ministry of Industry and Production and the Engineering Development Board (EDB) on a policy that strengthens the domestic sector, promotes investment and localisation, and gradually positions Pakistan as a competitive manufacturing and export base.

“Export development is a long-term process requiring investment in technology, product development, localisation, economies of scale, international certifications, market development and the establishment of competitive supply chains,” the DG added.

He pointed out that the industry’s ability to hit export targets also depends on factors beyond manufacturers’ control, including international market conditions, exchange rates, trade agreements, logistics and the overall competitiveness of the business environment.

The PAMA believed the new policy should offer a stable, transparent, and consultative framework with clearly defined and achievable objectives, along with incentives for manufacturers and the vendor industry to invest in exports and international competitiveness.

“The auto industry would greatly appreciate it if the draft Auto Policy is shared with the industry for review and consultation before it is submitted for final approval,” Rahman said.

Copyright Business Recorder, 2026