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Pakistan’s auto-parts sector is facing significant losses due to imported used cars, with annual damages estimated between Rs48–60 billion, according to the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM). Each imported vehicle replaces roughly Rs1.5 million worth of locally produced components, affecting jobs, revenue, and domestic economic activity.
PAAPAM warns that this trend undermines the government’s localisation and ‘Make in Pakistan’ vision. Senior Vice Chairman Shehryar Qadir stated,
“The government’s localisation and ‘Make in Pakistan’ vision cannot succeed if such large-scale displacement of domestic value addition continues unchecked.”
The domestic auto-parts industry employs around 300,000 people directly and over 2 million indirectly, making it a critical segment of Pakistan’s manufacturing. Imported used cars bypass local supply chains, causing idle capacity, financial distress, and potential shutdowns of SMEs, according to PAAPAM.
Qadir emphasized that achieving employment and industrial growth goals requires strengthening local manufacturing.
“Countries that have built their auto industries did so by nurturing domestic production while gradually integrating with global markets,” he noted.
The association urges policy reforms to regulate used car imports and support domestic vendors to sustain localisation, skill development, and technology transfer.
