The Pakistan Automotive Manufacturers Association (PAMA) has asked the government to share the draft of the proposed Auto Policy with the industry at the earliest, preferably before it is submitted to the Prime Minister for approval.
According to a statement released by PAMA, the industry is concerned by reports and rumors that the draft of the new Auto Policy has already been prepared and may be presented to the Prime Minister shortly. The association is particularly concerned by reports that the policy may prescribe punitive measures against manufacturers, including incremental tariffs and cancellation of manufacturing licenses, if steep export targets are not achieved.
“While the industry fully recognizes the importance of increasing exports, developing Pakistan’s automotive export capability and enhancing the sector’s contribution to the country’s foreign exchange earnings, such objectives would be better achieved through appropriate incentives, facilitation and a predictable policy framework rather than through punitive measures against the industry,” said PAMA Director General Razi ur Rahman.
He said the industry remains committed to working closely with the Ministry of Industries and Production and the Engineering Development Board in formulating an Auto Policy that strengthens the domestic automotive industry, promotes investment and localization, and progressively establishes Pakistan as a competitive automotive manufacturing and export base.
“Export development is a long-term process requiring investment in technology, product development, localization, economies of scale, international certifications, market development and the establishment of competitive supply chains,” said Rahman.
He added that the industry’s ability to achieve export targets is also influenced by factors beyond the direct control of individual manufacturers, including international market conditions, exchange rates, trade agreements, logistics and the competitiveness of the overall business environment.
“The industry therefore believes that the new Auto Policy should provide a stable, transparent and consultative framework, with clearly defined and achievable objectives, while creating appropriate incentives for manufacturers and the vendor industry to invest in exports and international competitiveness,” said Rahman.
“The auto industry would greatly appreciate it if the draft Auto Policy is shared with the industry for review and consultation before it is submitted for final approval,” he said, adding that meaningful consultation would allow the industry to provide constructive and informed feedback to help develop a policy that is ambitious in its objectives and practical in its implementation.
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