Pakistan plans big leap in local auto parts manufacturing

April 15, 2026 (MLN): Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan, held a meeting on Tuesday with a delegation of auto parts manufacturers to deliberate on the upcoming auto policy and measures aimed at strengthening Pakistan’s local automotive industry.

The meeting, also attended by Secretary Industries and Production Saif Anjum and Engineering Development Board (EDB) CEO Hammad Mansoor along with relevant stakeholders, focused on expanding local manufacturing and enhancing competitiveness of the domestic auto sector, according to a statement.

Discussions centered on key features of the new auto policy, with particular emphasis on increasing the localisation of auto parts manufacturing.

Haroon Akhtar Khan reiterated that promoting domestic production of automotive components remains a central objective of the government’s policy direction, according to APP.

Secretary Industries Saif Anjum informed participants that the ministry is preparing a comprehensive inventory of auto parts that can be produced locally in Pakistan.

He added that over the next five years, the government plans to provide adequate protection to locally manufactured components to support industry growth and import substitution.

SAPM Haroon Akhtar Khan stated that the forthcoming auto policy will be broad-based and designed to strengthen the country’s domestic automotive ecosystem while contributing to reduced vehicle prices through targeted policy interventions.

The meeting also reviewed proposals related to special incentives for electric vehicle (EV) parts manufacturing. These incentives are currently under consideration to encourage investment in emerging automotive technologies.

Highlighting the importance of technological adaptation, the SAPM urged local auto parts manufacturers to shift towards electric vehicle production in order to remain competitive in the rapidly evolving global automotive landscape.

He further said that under the leadership of Prime Minister Shehbaz Sharif, the new auto policy will be developed through extensive consultation with all stakeholders, with the aim of boosting local production capacity and increasing export potential.

The SAPM also directed the Engineering Development Board to continue engagement with industry stakeholders to ensure an inclusive, practical and effective policy framework for the automotive sector.

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