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ISLAMABAD, Aug 19 (APP):Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan on Tuesday stressed that the auto manufacturing and parts sector was the driving force behind Pakistan’s industrial revival and future economic growth.
Speaking at the Auto Parts Manufacturers Summit 2025, organized by the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), he highlighted that industrialization consistently delivered higher average incomes and improved living standards for the entire population, citing China’s rise as the most dramatic recent example.
SAPM Haroon noted that government policy shifts in the late 20th century transformed China from a primarily agricultural economy into the world’s largest manufacturing economy, lifting hundreds of millions of people out of poverty along the way.
“Pakistan today stands at a similar crossroads. The country has the human capital, strategic location, and natural resources that these successful nations leveraged during their industrial transformations,” he said.
The SAPM said under the leadership of the Prime Minister, the government was committed to implementing industrial policies that emphasized manufacturing growth, attracting foreign investment, and helping Pakistani products compete in global markets. “The blueprint exists. We simply need to execute it,” he added.
The auto sector, he said, contributes approximately 3% to GDP and provides direct and indirect employment to around 2.5 million people.
The SAPM said the successes of local assembly and manufacturing by global brands such as Toyota, Honda, Suzuki, Hyundai, Kia, Haval, MG, BYD and Chang’an showcase the sector’s capabilities and resilience.
However, he said, challenges remained, including high energy costs, technological and infrastructure gaps, access to finance issues, and a regulatory framework that hinders our progress towards global competitiveness.
Haroon acknowledged these hurdles but emphasized that addressing them strategically would unlock enormous potential.
“We have to move in the right direction,” he said, referencing ongoing tariff policy reforms and an upcoming industrial policy designed to complement these changes.
He said regulatory streamlining, declining interest rates and reduced energy tariffs were expected to create an enabling environment for the industry to not only serve domestic demand but also expand exports. “We want you to be competitive, not just for Pakistan’s market, but to generate volume through exports,” he added.
The SAPM called on industry leaders to embrace innovation, technology adoption, and research and development, which are central to upcoming energy vehicle policies and automobile sector reforms. These initiatives aim to foster localization, global competitiveness, and export-led growth.
“I have come to revive Pakistan’s industrialization and economic prosperity. When the country prospers, its people prosper. Together, with the government’s full support, we will seize this moment to build a competitive and sustainable future for the automotive industry—and for Pakistan as a whole,” he vowed.