Auto-Parts Sector Bears Rs. 60 Billion Blow from Used Car Imports Each Year
Imported used cars are causing serious losses for Pakistan’s local auto industry, with estimates suggesting the auto-parts sector loses nearly Rs 48–60 billion every year due to these imports.
Shehryar Qadir, Senior Vice Chairman of PAAPAM, said each imported vehicle replaces around Rs 1.5 million worth of locally made components. “This displacement directly affects economic growth, tax revenue, and employment opportunities,” he explained.
Local vendors, who form the backbone of the automotive industry, are facing major challenges. With fewer orders, many small and medium enterprises are struggling, leading to idle capacity, financial strain, and even closures. These developments threaten jobs and reverse years of progress in technology, skill development, and localisation.
“The automotive sector supports hundreds of thousands of skilled and semi-skilled workers. Every imported used vehicle represents not just a missed sale for assemblers, but a lost opportunity for employment,” Qadir added.
PAAPAM data shows auto-parts manufacturers employ roughly 300,000 people directly and over two million indirectly. Investments in technology and local production have created globally competitive capabilities, yet unrestricted used-car imports now put these achievements at risk.
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Qadir urged the government to strengthen domestic manufacturing as a path to sustainable employment. “Countries with successful auto industries built them by supporting local production while slowly integrating with global markets,” he concluded.
