ISLAMABAD – The Pakistan government is determined to drive industrialisation through policies and make local auto parts manufacturers globally competitive, said Advisor to the Prime Minister Haroon Akhtar Khan.
Speaking as the chief guest at the Auto Parts Summit in Islamabad on Tuesday, he said that Pakistan has the political will under the leadership of the PM to implement forward-thinking industrial policies that prioritise manufacturing, attract foreign investment, and position Pakistani products competitively in global supply chains.
“Pakistan stands at a crossroads. We possess the human capital, strategic location, and natural resources that successful nations leveraged during their industrial transformations”, Haroon said at the event organised by Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam).
He said that more than 1,200 local auto parts manufacturers are contributing 3% to the GDP, while this industry is also creating two million employment opportunities. He said that the local auto parts manufacturing industry will be made competitive at the international level.
He asked industrialists to invest in the latest technology and research, as this is the way to make Pakistan an auto hub in collaboration with the government.
Meanwhile, Chairman Paapam Usman Malik said that the United States of America is saving its industry through tariffs. He raised a question on the frequent changes in government policies. He said the government is implementing an environmentally friendly electric vehicle policy, but at the same time allowing the commercial import of diesel and petrol engine used cars.
He said that the present trend was hazardous for the local auto parts manufacturing industry. He said that it would be tough to revive the industry after it was damaged.
“Presently, many CKD operators are merely assembling imported parts rather than truly supporting local manufacturing,” he said.
Aamir Allawala said that the National Tariff Policy’s peak tariff structure will lead to the reversal of local value addition, and assemblers will be able to import parts at duties similar to localised ones, displacing domestic vendors overnight.
He said the policy must shield the local parts manufacturing ecosystem from shocks such as abrupt duty revisions or commercial imports of used cars.
