PAAPAM Reaffirms Importance of Pakistan’s Auto Parts Manufacturing Sector

Lahore: The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has reaffirmed its commitment to strengthening Pakistan’s auto parts manufacturing industry, describing it as a key contributor to industrial development, employment generation, import substitution and export growth.

PAAPAM Chairman Mr. Usman Malik said the local auto parts industry has invested billions of rupees over the past several decades in manufacturing facilities, tooling, engineering capabilities, localisation and quality systems. He noted that the sector supports thousands of direct and indirect jobs and continues to play a significant role in the country’s economy.

He said Pakistan’s auto parts manufacturers possess the capability to produce internationally competitive products. However, unlocking the sector’s full potential requires consistent industrial policies, competitive energy tariffs, affordable financing, export facilitation and a stable investment environment.

Former Chairman Mr. Aamir Allawala said that recent comparisons between Pakistan’s auto industry and the JF-17 Thunder programme overlook the fundamentally different nature of the two sectors. He explained that the JF-17 was a strategic national programme supported by long-term government commitment, sustained public investment and assured institutional demand, whereas the auto parts industry operates on private investment, market-driven demand and evolving fiscal and regulatory policies. The comparison, he said, highlights the importance of policy continuity, long-term planning and a supportive business environment for the sustainable growth of any manufacturing sector.

Mr. Allawala further said that addressing structural challenges such as high energy costs, expensive financing, taxation, logistics constraints and limited market access would significantly enhance the competitiveness of Pakistan’s auto parts industry and enable it to integrate more effectively into global value chains.

PAAPAM called upon the government, policymakers, media and all relevant stakeholders to work together to strengthen Pakistan’s manufacturing base, encourage investment and promote evidence-based dialogue on industrial development. The Association reiterated its commitment to innovation, quality and global competitiveness while contributing to Pakistan’s long-term economic growth.