Paapam Seeks PM Meeting Before Cabinet Sees Draft Pakistan Auto Policy 2026
The Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) has written to Prime Minister Muhammad Shehbaz Sharif asking for an urgent meeting on the draft Pakistan auto policy 2026. The industry body wants to place its concerns and proposals on record before the draft moves to the federal cabinet and the International Monetary Fund.
The letter was sent as a high-level committee, formed on the prime minister’s directive, continues a clause-by-clause review of the draft Auto and Auto Parts Policy 2026-2031. Paapam acknowledged the review process but warned that closing it without proper consultation with the vendor industry could damage the sector.
Paapam warns Pakistan auto policy 2026 risks jobs and localisation
In its communication, Paapam said finalising the Pakistan auto policy 2026 without meaningful industry consultation could pose serious risks to domestic manufacturing, employment generation, localisation and national self-reliance.
The association urged the government to share the reviewed draft with stakeholders before submitting it to the IMF and the cabinet. Manufacturers and allied sectors, it argued, hold the technical and practical expertise needed to make the policy workable.
“Manufacturers and allied sectors possess valuable technical and practical expertise that can help strengthen the policy framework and ensure that it supports industrial growth and the long-term sustainability of Pakistan’s automotive ecosystem,” Paapam said.
The leadership requested an early audience with the prime minister so its proposals can be heard before the review committee finishes its deliberations and the draft is placed before the cabinet.
Why the auto parts industry is uneasy
Pakistan’s vendor industry has spent decades building capacity around local assembly, and policy uncertainty is a recurring complaint. Each new auto policy resets tariffs, localisation incentives and import rules, and vendors say they are rarely consulted at the drafting stage.
Auto analyst Myesha Sohail forecast that the positive momentum in car sales should continue into FY27, with double-digit growth supported by new variants and fresh entrants. Paapam’s point is that this growth should be channelled into local manufacturing rather than imports.
The tension is visible elsewhere in the industry. Commerce Ministry data for September showed 2,276 used cars entering Pakistan, and local assemblers have told the government that relaxed import rules are costing the local parts business billions.
The association now wants one chance to present its case directly: meet the prime minister, show the numbers on jobs and localisation, and debate the draft before it becomes binding.
What happens next
The high-level committee is expected to conclude its review soon. Once its recommendations reach the cabinet, the draft will go to the IMF as part of programme conditionalities, after which changes become difficult.
Paapam is pressing for two things before that happens: the meeting itself, and a full view of the reviewed draft so the industry can respond point by point.
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Frequently asked questions
What is the draft Pakistan auto policy 2026?
It is the proposed Auto and Auto Parts Policy 2026-2031, the successor to the 2021-26 policy. It will set tariffs, localisation targets, incentives for new entrants and rules for the vendor industry for the next five years.
Why does Paapam want to meet the prime minister?
The association wants to present its concerns and proposals on the draft before it is finalised. It believes the industry was not consulted enough and that mistakes in the policy could cost manufacturing jobs and reverse localisation gains.
What happens if the policy is finalised without industry input?
Paapam says it would put domestic manufacturing, employment and self-reliance at risk. Its fear is a policy tilted towards imports that weakens the local vendor base built up over decades.
