Pakistan Auto Parts Manufacturers Challenge Draft Policy Over Import Tariffs

The Pakistan Association of Automotive Parts and Accessories Manufacturers urged Prime Minister Shehbaz Sharif to review the draft Auto Policy 2026-31. The association warned that proposed tariff reductions on completely built-up vehicles, concessions for new-energy vehicles, and lower duties on auto parts could undermine domestic manufacturing. The objection highlights that the policy could put 1.5 million jobs at risk and affect $1.8 billion in annual import substitution.

The policy creates a fundamental conflict between importers seeking lower trade barriers and local assemblers and parts manufacturers. Local parts suppliers are concerned that easier access to imported parts and complete vehicles could make locally manufactured components commercially unviable.