Islamabad: Zubair Kasuri: PAAPAM wants official inspection of 40 factories employing 30,000 workers; industry in talks with govt over new auto policy, Pakistan’s auto parts manufacturers have challenged the government’s assessment of local production in the automobile sector and asked Prime Minister Shehbaz Sharif to send a fact-finding team to Karachi to see for itself how much of the country’s automotive components are being manufactured locally.
The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), in a letter to the prime minister, has disputed the perception in certain government circles that little progress has been made in replacing imported automotive components with locally manufactured parts.
The association says local manufacturers are now producing components accounting for up to 65 percent of vehicle value, supplying parts to international automobile brands assembling vehicles in Pakistan.
PAAPAM Chairman Abdul Rehman Aijaz has requested the prime minister to constitute a government team to visit the automotive component manufacturing cluster in the Port Qasim Industrial Area, Karachi, where around 40 factories employ approximately 30,000 workers, technicians and engineers.
According to the letter, these factories are equipped with modern machinery and manufacturing technology and produce internationally certified components. The association wants government officials to inspect the facilities and verify the industry’s claims about localisation before taking decisions that could affect domestic manufacturers.
The request comes at a time when the government is preparing the Auto and Auto Parts Manufacturing Policy 2026-31, which has already raised concerns among local component manufacturers.
PAAPAM has warned that certain measures being considered in unofficial drafts of the policy could threaten the survival of domestic auto parts manufacturers.
The association has called for consultations with the industry before the policy is finalised, arguing that the government should take into account the investment already made in local production facilities, the employment generated by these factories and the technical expertise developed over the years.
The letter also draws attention to the industry’s potential contribution to defence equipment manufacturing. PAAPAM says the engineering capabilities developed by automotive component manufacturers could be utilised in other strategic manufacturing sectors, making the protection of the existing industrial base important for the country.
When contacted by The News, senior auto industry representative Aamir A. Allawala said discussions with the government were continuing over the proposed policy.
He said the industry was making efforts to ensure that the new policy protected local manufacturing interests while also providing relief and benefits to consumers.
“We are holding talks with the government and trying to work towards a policy that is beneficial for industrialists as well as the general public,” Allawala said.
He said the objective was to arrive at a policy that addressed the concerns of manufacturers without overlooking the interests of consumers and the country’s broader economic needs.
The association’s latest communication to the prime minister follows earlier objections raised by auto parts manufacturers over proposals being considered for the new five-year policy.
However, the demand for a government inspection of manufacturing facilities has brought the question of actual localisation levels into sharper focus.
PAAPAM maintains that the government should first establish the extent of local production through an on-ground assessment rather than rely on perceptions about the industry’s capabilities.
The association has urged the prime minister to arrange the proposed visit and ensure that the views of local component manufacturers are taken into consideration before the new automotive policy is finalised.
