Industry stakeholders have issued urgent calls for enhanced policy support, accelerated localization initiatives, and sustained investment to drive Pakistan’s automotive sector toward sustainable long-term growth. These recommendations emerged during Pakistan Auto Show 2025, where automotive and motorcycle enthusiasts gathered to witness the industry’s evolution.
Import Substitution and Economic Impact
The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Senior Vice Chairman Shehryar Qadir highlighted the sector’s substantial economic contribution, noting it represents approximately 3% of Pakistan’s gross domestic product and 15% of large-scale manufacturing output.
Qadir emphasized that domestic parts manufacturers currently deliver over Rs1.25 billion annually in import substitution. Expanding this figure would generate thousands of additional employment opportunities while preserving precious foreign exchange reserves, positioning local manufacturing as a cornerstone of economic development.
Critical Policy Requirements
Industry experts stressed that sustained growth requires consistent, long-term government policies spanning electric vehicles, fiscal incentives, and infrastructure development. Recent investments in EVs and advanced automotive technologies reflect growing confidence in government policy frameworks, though stakeholders maintain that success demands unwavering commitment.
Experts advocated narrowing the gap between Completely Knocked Down (CKD) and Completely Built Unit (CBU) duty structures, arguing that improved industry volumes would ultimately increase government revenue while making production more economically viable.
Investment and Export Orientation
Speakers emphasized the necessity of attracting joint ventures and fostering an export-focused “Make in Pakistan” approach. This strategic direction aligns with global automotive trends while creating opportunities for technology transfer, employment generation, and alignment with international innovation and climate action standards.
Show Highlights
Chief organizer Zain Shariq announced that the 20th edition expo featured participation from major automotive brands and EV manufacturers, offering visitors comprehensive industry insights alongside entertainment elements including concerts, interactive games, and new vehicle launches across the exhibition floor.
Industry leaders concluded that promoting automobile manufacturing through localization initiatives would generate favorable economic multiplier effects, strengthening Pakistan’s industrial base while addressing employment challenges and reducing dependency on imported vehicles and components.
