ISLAMABAD, SEP 6 /DNA/ – The Pakistan Institute of Development Economics (PIDE) hosted a Stakeholders’ Consultative Roundtable bringing together policymakers, industry representatives, and academicians to examine the evidence base for Pakistan’s forthcoming Automobile Policy 2026-2031 and to contribute to shaping a framework fit for the challenges facing the industry. The sitting drew on the joint Policy Viewpoint, “Shifting Gears: Shaping Pakistan’s Next Automobile Policy,” prepared by PIDE’s Center for Industry, Commerce and Digital Economy (CICDE) and Center for Governance, Markets and Regulatory Analysis (CGMRA).
The roundtable had three specific objectives: to present and examine the evidence base developed through PIDE’s research on Pakistan’s automobile sector; to provide a structured forum in which government, industry, and academicians could present their positions and engage positively with one another; and to work toward a shared understanding of the structural questions on market design, tariff rationalization, vendor development, and conditionality that the forthcoming policy must address. The event was designed as a dialogue, not a briefing, with PIDE anchoring the discussion in research evidence.
Opening remarks were delivered by Dr. Shahzada Naeem Nawaz, Professor of Economics and Director, Macro Policy Lab, PIDE, who welcomed participants on behalf of PIDE’s leadership and set the tone for the discussion that followed. Mr. Mohammad Shaaf Najib, Research Economist, CGMRA, PIDE, moderated the session, providing context for each discussion theme.
Dr. Usman Qadir, Senior Research Economist and Director, CICDE, PIDE, presented the key findings from PIDE’s research on the automobile sector. Dr. Qadir noted that while the industry has established a meaningful foundation over the past two decades, with production capacity exceeding 500,000 units and over fifteen assemblers now active in the market, production volumes, consumer affordability, and vendor sector development have not kept pace with that expansion. He made the case that the forthcoming policy presents a genuine opportunity to move toward a retail sales model, build vendor capabilities with clear technology transfer requirements, and ensure that policy incentives are tied to measurable performance outcomes.
Industry representatives highlighted the need for favourable and predictable tariff structures, greater policy consistency across successive governments, and trade agreements that actively facilitate exports. Mr. Aamir Allawala, CEO Tecno Auto Glass Limited and former President PAAPAM identified high taxation, security-related constraints, and the anti-export bias embedded in the current policy framework as significant impediments to growth of the automobile industry. Stakeholders were united in calling for greater transparency in the policy development process, with the view that the content and objectives of the forthcoming policy should be made publicly available for consultation before finalization. Mr. Hasan Mian, CEO, YES Electromotive termed the roundtable as the most fruitful consultative exercise on the issue.
Dr. Robina Ather, former chairperson of the National Tariff Commission emphasized that the National Tariff Policy 2025-2030 is designed to rationalize import tariffs across the whole economy and that its application to the automobile sector would need to be carefully sequenced to manage adjustment effectively. She further added that while tariff is a key component for the forthcoming auto policy, but it is not the only issue that needs addressal. Rather, the policy must focus on addressing all structural issues constraining the growth of auto sector in Pakistan.
All the participants lauded PIDE’s efforts to bring all stakeholders on the same table and hosting a meaningful and timely discussion on the issue.
