ISLAMABAD, September 6, 2026: The Pakistan Institute of Development Economics (PIDE) has called for comprehensive structural reforms in Pakistan’s automobile sector, urging the government to make the forthcoming Automobile Policy 2026–31 more competitive, export-oriented and performance-driven.The call was made at a Stakeholders’ Consultative Roundtable hosted by PIDE, where policymakers, automobile industry representatives and academicians discussed the evidence and policy priorities for the country’s next five-year automobile policy.
The consultation was based on PIDE’s joint policy viewpoint, “Shifting Gears: Shaping Pakistan’s Next Automobile Policy,” prepared by the institute’s Center for Industry, Commerce and Digital Economy (CICDE) and Center for Governance, Markets and Regulatory Analysis (CGMRA).The roundtable focused on four major structural issues—market design, tariff rationalization, vendor development and policy conditionality—and sought to build a shared understanding among government, industry and academia on reforms needed to strengthen the sector.
Opening the session, Dr. Shahzada Naeem Nawaz, Professor of Economics and Director of PIDE’s Macro Policy Lab, welcomed the participants and set the stage for an evidence-based discussion.Mr. Mohammad Shaaf Najib, Research Economist at CGMRA, moderated the session, while Dr. Usman Qadir, Senior Research Economist and Director of CICDE, presented key findings from PIDE’s research on the automobile industry.Dr. Qadir noted that Pakistan’s automobile sector had developed a significant industrial base over the past two decades, with production capacity exceeding 500,000 units and more than 15 assemblers operating in the market.
However, he pointed out that production volumes, consumer affordability and vendor development had not expanded at the same pace.He advocated a shift toward a retail sales model, stronger vendor capabilities supported by clear technology-transfer requirements, and a system in which government incentives are linked to measurable performance outcomes.Industry representatives, meanwhile, called for predictable and favourable tariff structures, greater consistency in government policies and trade agreements that could facilitate automobile exports.Mr. Aamir Allawala, CEO of Tecno Auto Glass Limited and former President of PAAPAM, identified high taxation, security-related challenges and the anti-export bias in the existing policy framework as major constraints on the industry’s growth.
Participants also stressed the importance of transparency in the policy-making process, urging the government to make the draft policy and its key objectives publicly available for stakeholder consultation before finalization.Mr. Hasan Mian, CEO of YES Electromotive, described the roundtable as one of the most fruitful consultative exercises on the automobile sector.Former National Tariff Commission Chairperson Dr. Robina Ather said the National Tariff Policy 2025–30 seeks to rationalize import tariffs across the economy and stressed that its application to the automobile sector would need to be carefully sequenced to ensure a manageable adjustment process.She emphasized that while tariffs remain an important component of the forthcoming automobile policy, they should not be treated as the sole solution. According to her, the new policy must address the broader structural constraints affecting the growth and competitiveness of Pakistan’s automobile industry.Participants appreciated PIDE’s initiative to bring government, industry and academia together for a timely and substantive discussion, stressing the importance of continued stakeholder engagement as the government finalizes the Automobile Policy 2026–31.
