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PAAPAM Chairman Usman Aslam Malik Urges Government to Prioritize Localization in New Auto Policy


The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has expressed deep concern over the prolonged delay in finalizing Pakistan's new Auto Industry Development Policy, warning that continued uncertainty is adversely affecting the country's automotive manufacturing ecosystem.


PAAPAM Chairman Usman Aslam Malik said the delay in finalizing the new auto policy has created significant uncertainty among the association's member industries, many of which are already facing considerable financial and operational challenges.

"The new Auto Industry Development Policy must prioritize the development and strengthening of Pakistan's auto parts and components manufacturing base, which is the backbone of the country's automotive value chain," said Malik.

He noted that the last two auto policies primarily focused on attracting new vehicle assemblers. While this approach expanded the number of automotive brands in the market, it did not sufficiently promote localization, indigenous engineering capabilities, or domestic technology development, resulting in a weakened local auto parts manufacturing ecosystem.

Malik urged the Government of Pakistan to adopt a policy direction centered on localization, technology upgradation, engineering capability enhancement, and employment generation. He emphasized that without this strategic shift, Pakistan risks eroding its industrial base and becoming increasingly dependent on imported vehicles and components instead of strengthening domestic manufacturing.

He further called for a stable, long-term 10-year Auto Industry Development Policy that provides policy continuity, enhances investor confidence, and enables predictable industrial planning to support sustainable growth and industrial competitiveness.

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