Pakistan Auto Assemblers Express Alarm as Govt Withholds New Policy

KARACHI: Domestic automotive assemblers have expressed severe concern over growing ambiguity in the sector as the federal government continues to withhold official copies of the newly announced Auto Industry Development and Export Policy (2026-2031). Despite the policy being publicly announced last week, major industry stakeholders remain in the dark regarding its specific provisions, regulatory frameworks, and incentive structures, severely hampering corporate planning across the automotive supply chain.

Raziur Rehman, speaking on behalf of the Pakistan Automotive Manufacturers Association (PAMA), revealed that formal requests submitted to the Ministry of Industries and Production to access the official policy document have so far yielded no results. Rehman criticized the government’s unprecedented secrecy surrounding the crucial framework, describing the lack of communication as baffling and counterproductive. He emphasized that while ministry officials may have constructive intentions, delaying the release of the finalized text until all administrative approvals are secured is inflicting severe operational damage on local manufacturers.

The prolonged delay and persistent policy opacity have created significant disruption across the domestic automotive market, leading to a visible buildup of unsold vehicle inventories and growing reluctance among consumers to finalize major purchasing decisions. Industry experts warn that unresolved policy frameworks directly destabilize investor confidence, paralyze assembly line operations, and risk stalling long-term localization efforts. With production costs already elevated due to macroeconomic headwinds, the lack of strategic clarity threatens to cause irreparable harm to the manufacturing ecosystem.

Stakeholders have repeatedly urged the Ministry of Industries and Production alongside the Engineering Development Board (EDB) to immediately share the comprehensive policy draft with key industry representatives. Auto manufacturers are calling for an urgent consultative session to review the proposed regulations before formal implementation, stressing that transparent public-private collaboration is vital to restore commercial certainty and stabilize the country’s automotive sector.