ISLAMABAD – The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has once again raised alarms over the continued commercial import of used cars, warning that the practice threatens the very survival of Pakistan’s local auto parts industry.
According to the association, the industry currently manufactures nearly 70 percent of car parts and 90 percent of motorcycle parts, directly employing close to two million people nationwide.
Speaking at the Auto Parts Summit organized by PAAPAM, Chairman Usman Malik urged the government to protect local manufacturers. He emphasized that developed nations, including the United States, continue to safeguard their automotive sectors through tariff protections and policy consistency. Malik warned that the unchecked inflow of used cars could dismantle domestic industry, which is already grappling with policy instability and rising costs.
Special Advisor to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan, attended as the chief guest and reaffirmed the government’s commitment to supporting industrialization. He noted that Pakistan has the right mix of human capital, geographic advantage, and natural resources to strengthen its manufacturing base. According to him, over 1,200 local auto parts manufacturers are already contributing around three percent to GDP, while providing millions of jobs.
However, PAAPAM leaders remain concerned that frequent policy shifts undermine industry confidence. While the government promotes environmentally friendly electric vehicle policies, the parallel allowance of imported diesel and petrol cars contradicts these goals. Malik cautioned that once the local manufacturing base is weakened, reviving it would be extremely difficult. He also pointed out that many completely knocked down (CKD) operators are merely assembling imported kits, doing little to foster true local production.
Despite challenges, PAAPAM highlighted positive achievements of the sector, noting that Pakistan’s auto parts industry exports approximately $200 million annually, adhering to international safety and quality standards. In addition, locally produced Millat Tractors are successfully being exported to the United States, showcasing the potential of Pakistani manufacturers in global markets.
Concluding the summit, Malik stressed that with government support, policy consistency, and investment in research and technology, the auto parts sector could transform Pakistan into a regional automotive hub. He reiterated that PAAPAM will continue to advocate for a balanced policy framework that both protects local industry and encourages sustainable innovation.