Auto sector seeks prime minister’s intervention

Pakistan's auto assemblers and parts manufacturers have urged Prime Minister Shehbaz Sharif to convene an urgent meeting with industry stakeholders, warning that proposed cuts in completely built-up (CBU) vehicle import tariffs and delays in the new auto policy threaten the sector's future.

 

The Pakistan Automotive Manufacturers Association (PAMA) said reducing CBU import tariffs to 15% under the National Tariff Policy 2026–31 would make imported vehicles more competitive, risking factory closures, the loss of over 1,300 auto parts manufacturers, more than USD 5 billion in industrial investment, and livelihoods linked to around 2.5 million people.

 

The industry has called for the automotive sector to be excluded from the proposed tariff reductions, the introduction of a stable long-term auto policy, and the retention of at least a 40% tariff differential between imported and locally manufactured vehicles to support localisation and investment. The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) also urged the government to finalise the delayed auto policy to restore investor confidence and strengthen the local vendor industry.