Pakistan’s auto industry has long been seen as a potential driver of economic growth, employment, and industrial development. Yet, decades of policies and ambitious targets have largely fallen short. From localisation mandates to export goals, multiple auto sector objectives since 2007 remain unmet. High used car imports, inconsistent incentives, and fragmented policy implementation continue to limit domestic manufacturing capacity, holding back the industry’s full potential.
Despite repeated government initiatives to promote vehicle localisation and strengthen the automotive parts industry, progress has been slow. Domestic production still relies heavily on imported components, inflating costs and reducing competitiveness. Meanwhile, auto exports remain minimal, preventing Pakistan from becoming a regional player in the automotive sector. Experts argue that without a clear, long-term policy focus, the industry will continue to lag behind neighboring countries that have successfully leveraged auto manufacturing as a key economic driver.
To revive the sector, Pakistan must adopt a stable and comprehensive auto policy that incentivizes local manufacturing, encourages investment in modern facilities, and prioritizes research and development. Supporting export-oriented growth, enforcing localisation mandates, and providing duty concessions for domestic components could help make the country’s automotive sector globally competitive. If implemented effectively, these reforms could create jobs, boost GDP contribution, and establish a sustainable automotive ecosystem in Pakistan.
Fore More : CORPORATE WINDOW: A legacy of unachieved auto goals
