The Pakistan Automotive Manufacturers Association (PAMA) has asked the government to share the draft of the proposed Auto Policy with the industry before it is sent to the Prime Minister for approval.
PAMA said it was concerned by reports that the new policy has already been prepared and could soon be presented to the Prime Minister.
The association is particularly concerned about reports that manufacturers could face stricter measures, including higher tariffs and cancellation of manufacturing licenses, if they fail to meet proposed export targets.
PAMA Director General Razi ur Rahman said the industry supports efforts to increase automotive exports and boost the sector’s contribution to Pakistan’s foreign exchange earnings.
However, he said export growth would be better achieved through incentives, facilitation and a stable policy environment rather than punitive measures.
Rahman said the industry is ready to work with the Ministry of Industries and Production and the Engineering Development Board to develop a policy that supports local manufacturing, attracts investment and helps Pakistan build a competitive automotive export industry.
He said increasing exports requires long-term investment in technology, product development, localization, economies of scale, international certifications, new markets and competitive supply chains.
Rahman added that manufacturers cannot fully control several factors that affect exports, including international market conditions, exchange rates, trade agreements, logistics and the overall competitiveness of the business environment.
PAMA said the new Auto Policy should therefore provide a stable and transparent framework with realistic targets and incentives for manufacturers and auto parts vendors to invest in exports.
The association has requested that the government share the policy draft with the industry for review and consultation before seeking final approval.
Rahman said meaningful consultation would allow the industry to provide feedback and help develop a policy with ambitious targets that can also be implemented effectively.
