{"id":3272,"date":"2026-08-11T12:42:27","date_gmt":"2026-08-11T12:42:27","guid":{"rendered":"https:\/\/wisewheels.com.pk\/blogs\/blogs\/?p=3272"},"modified":"2026-08-11T12:43:02","modified_gmt":"2026-08-11T12:43:02","slug":"paapam-urges-pm-to-end-pakistan-auto-policy-delay","status":"publish","type":"post","link":"https:\/\/wisewheels.com.pk\/blogs\/paapam-urges-pm-to-end-pakistan-auto-policy-delay\/","title":{"rendered":"PAAPAM Urges PM Shehbaz Sharif to End Pakistan Auto Policy Delay"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Pakistan&#8217;s automotive industry is once again in the spotlight as the <\/span><b>Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM)<\/b><span style=\"font-weight: 400;\"> has formally urged Prime Minister <\/span><b>Shehbaz Sharif<\/b><span style=\"font-weight: 400;\"> to address the prolonged delay in announcing the country&#8217;s new auto policy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a letter sent to the Prime Minister&#8217;s Office on <\/span><b>August 3, 2026<\/b><span style=\"font-weight: 400;\">, PAAPAM warned that the uncertainty surrounding the policy is affecting investment decisions, slowing industry growth, and weakening confidence among automotive manufacturers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The association has also requested a meeting with the Prime Minister to discuss its recommendations for creating a more competitive, localized, and sustainable automotive sector in Pakistan.<\/span><\/p>\n<h2><b>Why Is Pakistan&#8217;s New Auto Policy Being Delayed?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">According to PAAPAM, the continued delay in finalizing Pakistan&#8217;s new auto policy has created significant uncertainty across the automotive industry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Without a clear policy framework, local auto parts manufacturers are finding it difficult to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Make long-term investment decisions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Expand production capacity<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Upgrade manufacturing technology<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Plan future business strategies<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The association believes that policy uncertainty discourages investors and could divert investment toward countries with more stable and predictable automotive policies.<\/span><\/p>\n<h2><b>How the Previous Auto Policies Affected Pakistan&#8217;s Auto Industry<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">PAAPAM argued that earlier automotive policies largely supported the import of vehicle components for assembly in Pakistan instead of encouraging local manufacturing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While these policies helped establish more vehicle assembly plants, they did not provide enough incentives for developing Pakistan&#8217;s domestic auto parts industry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, the country increased vehicle assembly operations but failed to significantly strengthen local production of automotive components.<\/span><\/p>\n<h2><b>PAAPAM Calls for Greater Localization of Auto Parts<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">One of PAAPAM&#8217;s key recommendations is to make <\/span><b>parts localization<\/b><span style=\"font-weight: 400;\"> the central focus of Pakistan&#8217;s upcoming auto policy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The association wants the government to introduce measures that enable local manufacturers to:<\/span><\/p>\n<h3><b>Increase Domestic Auto Parts Production<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">PAAPAM believes stronger support for local vendors will help expand Pakistan&#8217;s manufacturing base and improve industrial competitiveness.<\/span><\/p>\n<h3><b>Reduce Reliance on Imported CKD Kits<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The association also emphasized reducing dependence on imported <\/span><b>Completely Knocked Down (CKD) kits<\/b><span style=\"font-weight: 400;\"> by increasing local production of automotive components.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Greater localization could strengthen Pakistan&#8217;s supply chain while supporting domestic manufacturing capabilities.<\/span><\/p>\n<h2><b>Automotive Vendors Play a Major Role in Employment<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">PAAPAM stated that automotive vendors account for approximately <\/span><b>80% of employment<\/b><span style=\"font-weight: 400;\"> across Pakistan&#8217;s broader automotive industry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite their significant contribution to jobs and industrial activity, the association says vendors have received limited meaningful support under previous automotive policies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It believes the new policy should prioritize the needs of local manufacturers to encourage sustainable industrial growth and employment.<\/span><\/p>\n<h2><b>PAAPAM Requests Meeting With Prime Minister Shehbaz Sharif<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In its letter, PAAPAM requested a meeting with Prime Minister Shehbaz Sharif to present recommendations aimed at building a stronger and more competitive automotive sector.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The association also asked to hold discussions with the government&#8217;s economic team, led by economist <\/span><b>Stefan Dercon<\/b><span style=\"font-weight: 400;\">, regarding the <\/span><b>National Tariff Policy<\/b><span style=\"font-weight: 400;\"> and its impact on Pakistan&#8217;s local vehicle and auto parts manufacturing industry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">PAAPAM stressed that the concerns of the vendor industry should be considered before any tariff-related decisions affecting domestic manufacturing are finalized.<\/span><\/p>\n<h2><b>What PAAPAM Wants From the New Auto Policy<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">According to the association, Pakistan&#8217;s upcoming auto policy should focus on:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Encouraging greater localization of auto parts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Supporting investment in local manufacturing<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Expanding production capacity<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reducing dependence on imported CKD kits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Promoting industrialization<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Supporting import substitution<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Creating sustainable employment opportunities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Strengthening Pakistan&#8217;s automotive supply chain<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">PAAPAM has reiterated its willingness to work with the government to develop policies that support long-term growth for Pakistan&#8217;s automotive industry.<\/span><\/p>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">PAAPAM&#8217;s appeal highlights the growing concern within Pakistan&#8217;s automotive sector over the delayed auto policy. The association believes that a clear and stable policy framework is essential to restore investor confidence, encourage local manufacturing, and reduce reliance on imported vehicle components.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As discussions with the government move forward, industry stakeholders will be closely watching whether the new policy delivers stronger support for localization, industrial development, and sustainable growth across Pakistan&#8217;s automotive sector.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Keep reading <span style=\"color: #0078ff;\"><a style=\"color: #0078ff;\" href=\"https:\/\/wisewheels.com.pk\/blogs\/\"><strong>Wise Wheels blogs<\/strong><\/a><\/span>\u00a0for the latest Pakistan auto industry news, vehicle policy updates, car launches, automotive insights, and expert analysis to stay informed about everything happening in the local automobile market.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pakistan&#8217;s automotive industry is once again in the spotlight as the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has formally urged Prime Minister Shehbaz Sharif to address the prolonged delay in announcing the country&#8217;s new auto policy. In a letter sent to the Prime Minister&#8217;s Office on August 3, 2026, PAAPAM warned that &#8230; <a title=\"PAAPAM Urges PM Shehbaz Sharif to End Pakistan Auto Policy Delay\" class=\"read-more\" href=\"https:\/\/wisewheels.com.pk\/blogs\/paapam-urges-pm-to-end-pakistan-auto-policy-delay\/\" aria-label=\"Read more about PAAPAM Urges PM Shehbaz Sharif to End Pakistan Auto Policy Delay\">Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":3280,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,32],"tags":[964,965,76],"class_list":["post-3272","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-guides","tag-auto-policy-delay","tag-auto-policy-delay-pm","tag-wise-wheels"],"_links":{"self":[{"href":"https:\/\/wisewheels.com.pk\/blogs\/wp-json\/wp\/v2\/posts\/3272","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wisewheels.com.pk\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wisewheels.com.pk\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wisewheels.com.pk\/blogs\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/wisewheels.com.pk\/blogs\/wp-json\/wp\/v2\/comments?post=3272"}],"version-history":[{"count":0,"href":"https:\/\/wisewheels.com.pk\/blogs\/wp-json\/wp\/v2\/posts\/3272\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wisewheels.com.pk\/blogs\/wp-json\/wp\/v2\/media\/3280"}],"wp:attachment":[{"href":"https:\/\/wisewheels.com.pk\/blogs\/wp-json\/wp\/v2\/media?parent=3272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wisewheels.com.pk\/blogs\/wp-json\/wp\/v2\/categories?post=3272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wisewheels.com.pk\/blogs\/wp-json\/wp\/v2\/tags?post=3272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}