By Zubair Kasuri, ISLAMABAD: Pakistan’s auto parts manufacturers have urged the government to link the liberalisation of used vehicle imports with safeguards for domestic investment and consumer protection, warning that reduced obligations for importers could undermine businesses investing in local production.
The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has sought a review of the Engineering Development Board’s revised import framework, particularly provisions covering importers’ financial capacity, after-sales services, spare parts availability and vehicle inspections.
Speaking to The News, former PAAPAM chairman Aamir A. Allawala said the industry was engaged in consultations with the government to develop a policy framework that encouraged investment and supported local manufacturing while benefiting consumers.
He said the objective was to reach a workable arrangement that attracted further investment, expanded domestic production and addressed the concerns of manufacturers without overlooking the interests of buyers.
The association’s concerns were outlined in a letter from PAAPAM Chairman Abdul Rehman Aizaz to Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan, seeking a review of the rules governing commercial imports of used vehicles.
According to the letter, the revised framework removes the minimum capital requirement for importers, allows third-party workshop arrangements in place of importer-owned after-sales infrastructure and drops the mandatory assurance of spare parts availability.
PAAPAM argued that these changes reduced importers’ responsibilities while domestic manufacturers continued to bear the cost of production facilities, machinery, workforce development, quality systems, taxation and regulatory compliance.
The association also questioned the expansion of import eligibility from incorporated companies to partnership firms and proprietorships. It said the combined effect of lower entry requirements and relaxed service obligations could place local manufacturers and their suppliers at a competitive disadvantage.
Vehicle inspection procedures were another concern. While the revised framework retains UNECE WP-29 standards, PAAPAM said mandatory independent post-shipment physical inspection had been replaced with documentary verification.
The association argued that retaining technical standards without effective verification mechanisms could weaken oversight of imported vehicles.
Allawala emphasised that consultations should produce a policy serving both industry and the public. The industry’s position, he said, was that policy decisions should support domestic manufacturing alongside consumer choice and fair competition.
PAAPAM said the issue also had implications for technology transfer, employment and the development of local component suppliers. A predictable policy framework, it argued, was necessary to encourage businesses to commit capital to manufacturing in Pakistan.
The association requested that implementation of the notification be suspended pending consultation with the automotive industry and other stakeholders. It called for a balanced framework that protected consumers while ensuring that investment in domestic production remained commercially viable.
