LAHORE: The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has voiced serious concerns over reports that the draft Automobile and Auto Parts Manufacturing Policy for 2026–2031 is being forwarded to the International Monetary Fund (IMF) without adequate consultation with key industry stakeholders, including the Engineering Development Board (EDB). In a statement, PAAPAM Chairman Usman Aslam Malik warned that the unilateral approach could jeopardize an industrial ecosystem supporting more than one million livelihoods. He said over 300, 000 workers are directly employed in manufacturing operations, while another 700, 000 depend on allied services linked to the auto parts sector. Senior Vice Chairman Shehryar Qadir cautioned that applying the National Tariff Policy uniformly to the automobile sector could reverse decades of localization efforts and undermines industrial self-reliance. READ MORE: Auto Policy likely to be unveiled on July 1 He emphasized that the sector requires a dedicated and sector-specific policy framework rather than a uniform policy approach. The association’s leadership acknowledged the constructive role played by the Special Assistant to the Prime Minister on Industries and Production and expressed hope that the same level of transparency would be maintained during the finalization of the policy. The PAAPAM urged the government to defer submission of the draft policy to the IMF, initiate meaningful consultations with industry stakeholders, safeguard locally manufactured parts through appropriate tariff differentiation, and adopt a balanced, export-oriented policy framework to support sustainable industrial growth. Copyright Business Recorder, 2026
Auto policy draft: PAAPAM voices concerns
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