Pakistan's auto parts makers warn 1.5 million jobs at risk under draft Auto Policy 2026-31

PAAPAM has asked Prime Minister Shehbaz Sharif to reconsider the draft Auto Policy 2026-31, warning that cheaper imports could put about 1.5 million jobs at risk. In a letter dated October 23, its chairman Abdul Rehman Aizaz said the parts industry includes more than 1,200 companies and contributes $1.8 billion a year through import substitution.

The association says local suppliers provide Rs700 billion of components to vehicle assemblers, and argues that reduced duties on imported vehicles and parts could weaken domestic production and investment. The draft also proposes phased tariff cuts, export-linked incentives and preferential taxes for new-energy vehicles, with a goal of $6 billion in vehicle and component exports by 2030-31. PAAPAM has sought a meeting with the prime minister to present alternatives before the policy is finalised, amid differing views among suppliers, assemblers and importers.