KARACHI: Pakistan’s auto industry needs stronger policy support, greater localisation, and sustained investment to achieve long-term, sustainable growth, industry experts said on Saturday, as auto and motorcycle enthusiasts thronged the Pakistan Auto Show (PAS) 2025 at the Karachi Expo Centre.
The three-day event, organised by the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), began on Friday and features over 170 exhibitors, including major automotive brands and electric vehicle (EV) sellers.
Auto sector analyst Shafiq Ahmed Shaikh said empowering localisation was essential for durable growth in the sector. “Empowering auto localisation is necessary for long-term sustainable growth, but how to achieve this needs serious debate among stakeholders, as in the last forty years we have not seen the desired results,” he said.
“In my opinion, Pakistan’s auto industry must move in tandem with vendors’ own investment, introduction of new technologies, and investment or joint ventures from global vendors,” he added.
Shaikh said the recent wave of investment in EVs and advanced technologies reflected a longer-term outlook and confidence in government policies. He stressed that for this shift to succeed, the EV sector required consistent long-term policies, incentives, and fiscal support to create jobs, introduce advanced technologies, and help align Pakistan with global standards on innovation and climate action.
He also suggested narrowing the gap between Completely Knocked Down (CKD) and Completely Built Unit (CBU) duty structures. “If this gap is reduced, industry volumes can improve, which would ultimately increase government revenue,” he said.
PAAPAM Senior Vice Chairman Shehryar Qadir said the automobile sector contributes around 3% to Pakistan’s gross domestic product and about 15% to large-scale manufacturing. “Promoting the automobile sector, particularly through local manufacturing, is bound to have a favourable contribution towards developing the economy,” he said.
Qadir noted that the local parts manufacturing industry already provides over Rs1.25 billion in annual import substitution. “Growth in this figure will not only save precious foreign exchange but also create thousands of additional jobs in the country,” he added.
Chief organiser of Pakistan Auto Show 2025, Zain Shariq, said this year marks the 20th edition of the expo. He said visitors would experience a comprehensive view of the automotive industry alongside concerts, games, and car launches on the show floor, with participation from all major automotive brands and EV sellers.
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