Auto policy without localisation meaningless: PAAPAM

The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has warned the government that ignoring localisation in the Auto Policy will badly hit the steel melting industry. In a statement on Monday, Chairman PAAPAM Usman Aslam Malik said the PAAPAM has been in continuous dialogue with the government over the past year on the forthcoming Auto Policy 2026-31. “PAAPAM’s stance is clear that without protection of the job-creating local auto parts industry, the policy loses all rationale.” If localisation is ignored, it would be better to abandon the policy, allow imports of completely built up vehicles, and accept the collapse of the domestic industry rather than wait for it to happen gradually. He stated that the auto policy must be anchored in a competitive local parts industry, warning that without strong tariff safeguard and enforcement, Pakistan’s vendors cannot survive against a 34 percent cost disadvantage to produce in Pakistan, a country with high energy cost, high interest rates and high taxation.