Auto parts makers call attention to industry hurdles

ISLAMABAD: The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has said the domestic auto parts sector remains an important contributor to industrial growth, jobs and import substitution, while stressing that a more supportive policy environment is needed to help it expand further.

In a statement issued on Monday, PAAPAM reaffirmed its commitment to strengthening the industry. Chairman Usman Malik said local parts manufacturers had invested billions of rupees over several decades in plants, tooling, engineering capacity and quality systems. He added that the sector supports thousands of direct and indirect jobs across the country.

Malik said Pakistani auto parts makers have the ability to produce products that can compete internationally. He said the industry’s untapped potential could be realised through consistent industrial policies, competitive energy tariffs, lower-cost financing, support for exports and a stable climate for investment.

Industry draws contrast with JF-17 programme

Former PAAPAM chairman Aamir Allawala said recent comparisons between Pakistan’s auto industry and the JF-17 Thunder programme fail to account for the basic differences between the two sectors. He said the JF-17 project was a strategic national initiative backed by sustained state support, long-term public investment and assured institutional demand.

By contrast, he said, the auto parts industry functions through private capital, demand shaped by the market and changing fiscal policies. According to Allawala, this difference underlines the need for policy continuity, long-term planning and a business environment that supports durable growth in manufacturing.

Structural hurdles remain

Allawala said the competitiveness of Pakistan’s auto parts industry could improve significantly if structural constraints were addressed. He identified high energy costs, costly financing, taxation, logistics bottlenecks and restricted market access as major issues facing manufacturers.

The association’s statement presented the sector as one with an established industrial base and export potential, but one that still requires steady policy support and lower operating costs to strengthen its position.