LAHORE:
The passage of the Motor Automobile Trade Improvement Act 2025 has alarmed Pakistan’s auto sector. Stakeholders concern the laws will disrupt the trade’s fragile restoration and criminalise official enterprise practices.
The Pakistan Automotive Producers’ Affiliation (PAMA), the Pakistan Affiliation of Automotive Elements and Equipment Producers (PAAPAM), and unbiased analysts argue the Act was drafted in haste with out correct session. They are saying the federal government ought to deal with supporting development as a substitute of including hurdles.
“This regulation seems to criminalise manufacturing and commerce with out justification,” stated PAMA Director Common Abdul Waheed Khan in a letter to the Ministry of Industries. He added that “involving the FIA is particularly troubling” and that the invoice doesn’t strengthen client safety past the Auto Trade Improvement and Export Coverage (AIDEP) 2021-26, already in impact till 2026.
PAAPAM additionally criticised the Act, saying distributors have been ignored regardless of forming the spine of the provision chain. A senior consultant stated rising prices, unstable change charges, and falling demand already pressure elements makers. “As a substitute of help, this invoice creates concern and uncertainty. The trade wants facilitation, not penalisation,” he stated.
Unbiased analysts famous the Act introduces strict penalties when the sector is shrinking. One professional, talking on the situation of anonymity, stated auto industries worldwide want long-term coverage stability, however in Pakistan, restoration is disrupted by sudden adjustments. “The Act displays short-term pondering and should scare away buyers,” he warned. The information paints a grim image. Automotive gross sales plunged 52% in three years, from 234,180 models in FY2021-22 to 112,203 in FY2024-25. Tractor gross sales halved to 29,192 models, whereas two- and three-wheeler gross sales dropped 17%.
