The Pakistan Institute of Development Economics (PIDE) has called for structural reforms in Pakistan\u2019s automobile sector through the forthcoming Automobile Policy 2026-2031, with stakeholders emphasizing tariff rationalization, vendor development, technology transfer and performance-based incentives.<\/p>\n
PIDE made the call at a Stakeholders\u2019 Consultative Roundtable hosted by the institute, bringing together policymakers, industry representatives and academicians to examine the evidence base for the forthcoming policy and contribute to a framework addressing the challenges facing the automobile industry.<\/p>\n
The discussion drew on the joint Policy Viewpoint, \u201cShifting Gears: Shaping Pakistan\u2019s Next Automobile Policy,\u201d prepared by PIDE\u2019s Center for Industry, Commerce and Digital Economy (CICDE) and Center for Governance, Markets and Regulatory Analysis (CGMRA).<\/p>\n
The roundtable aimed to examine PIDE\u2019s research-based evidence on the automobile sector, provide a structured forum for government, industry and academia to present their positions, and develop a shared understanding of structural issues relating to market design, tariff rationalization, vendor development and policy conditionality.<\/p>\n
Opening the session, Dr Shahzada Naeem Nawaz, Professor of Economics and Director, Macro Policy Lab, PIDE, welcomed the participants on behalf of the institute\u2019s leadership and set the tone for the discussion.<\/p>\n
Mohammad Shaaf Najib, Research Economist, CGMRA, PIDE, moderated the session and provided context for the discussion themes.<\/p>\n
Dr Usman Qadir, Senior Research Economist and Director, CICDE, PIDE, presented key findings from PIDE\u2019s research on the automobile sector.<\/p>\n
He said that while the industry had established a meaningful foundation over the past two decades, with production capacity exceeding 500,000 units and more than 15 assemblers active in the market, production volumes, consumer affordability and vendor-sector development had not kept pace with the expansion.<\/p>\n
He said the forthcoming policy provided an opportunity to move towards a retail sales model, strengthen vendor capabilities through clear technology-transfer requirements and link policy incentives with measurable performance outcomes.<\/p>\n
Industry representatives called for favourable and predictable tariff structures, greater policy consistency across successive governments and trade agreements that actively facilitated exports.<\/p>\n
Aamir Allawala, CEO of Tecno Auto Glass Limited and former President of PAAPAM, identified high taxation, security-related constraints and the anti-export bias embedded in the existing policy framework as major impediments to the growth of the automobile industry.<\/p>\n
Participants also called for greater transparency in the policy formulation process, stressing that the content and objectives of the forthcoming policy should be made publicly available for consultation before its finalization.<\/p>\n
Hasan Mian, CEO of YES Electromotive, termed the roundtable the most fruitful consultative exercise on the issue.<\/p>\n
Dr Robina Ather, former Chairperson of the National Tariff Commission, said the National Tariff Policy 2025-2030 was designed to rationalize import tariffs across the economy and its application to the automobile sector would need to be carefully sequenced to manage the adjustment process effectively.<\/p>\n
She said tariff was an important component of the forthcoming automobile policy but was not the only issue requiring attention. The policy, she added, should address all structural constraints hindering the growth of Pakistan\u2019s automobile sector.<\/p>\n
All participants appreciated PIDE\u2019s initiative to bring stakeholders together and hold a meaningful and timely consultation on the future of the automobile industry.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Pakistan Institute of Development Economics (PIDE) has called for structural reforms in Pakistan\u2019s automobile sector through the forthcoming Automobile Policy 2026-2031, with stakeholders emphasizing tariff rationalization, vendor development, technology transfer and performance-based incentives. PIDE made the call at a Stakeholders\u2019 Consultative Roundtable hosted by […]<\/p>\n
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