PAAPAM Calls for Stable Policies to Strengthen Pakistan’s Auto Parts Industry

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LAHORE: The Pakistan Association of Automotive Parts and Accessories Manufacturers has urged the government to adopt consistent industrial policies and improve the business environment to support the growth of Pakistan’s auto parts manufacturing sector.

The association said the industry contributes to employment, industrial development, import substitution and export growth, but faces pressure from high energy costs, expensive financing, taxation, logistics constraints and limited access to international markets.

PAAPAM Chairman Usman Malik said local manufacturers had invested billions of rupees over several decades in production facilities, tooling, engineering, localisation and quality-control systems.

He said the sector supports thousands of direct and indirect jobs and has the capacity to produce internationally competitive components.

According to Malik, the industry’s future growth will depend on policy continuity, competitive energy tariffs, affordable credit, export facilitation and a stable investment framework.

PAAPAM Rejects Direct Comparison With JF-17 Programme

Former PAAPAM chairman Aamir Allawala said recent comparisons between Pakistan’s automotive industry and the JF-17 Thunder programme did not reflect the different structures under which the two sectors operate.

He said the JF-17 was a strategic national programme supported by sustained public investment, long-term government commitment and assured institutional demand.

In contrast, Pakistan’s auto parts industry is largely driven by private investment, consumer demand and changing fiscal and regulatory policies, he added.

Allawala said the comparison nevertheless underlined the importance of long-term planning and policy consistency for the development of any manufacturing industry.

He said reducing energy and financing costs, simplifying taxation, improving logistics and expanding market access could help Pakistani manufacturers compete more effectively and become part of global automotive supply chains.

PAAPAM called on the government, policymakers, media organisations and other stakeholders to promote evidence-based discussion on industrial development and work towards strengthening the country’s manufacturing base.

The association said it would continue to focus on innovation, quality improvement and international competitiveness while supporting Pakistan’s wider economic growth.

Also Read: PAAPAM launches 21st Pakistan Auto Show 2026 in Lahore under ‘Make in Pakistan’ theme

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