$131b regional auto trade at risk

Pakistan stands on the edge of a $131 billion regional automobile trade corridor, where even a 5% share could yield $6.5 billion in annual exports — 70 times higher than current levels. With its strategic geography and a vendor base already validated by leading Japanese, Korean and European automakers, Pakistan has the ingredients to become a significant player. Yet, a new report warns that abrupt tariff changes and the normalisation of used-car imports threaten to derail the progress made by the country's auto-parts ecosystem. Monsoon travel packages The report by the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) highlights that Pakistan's auto-parts ecosystem has been built painstakingly over decades. It now consists of more than 1,200 Tier-1, Tier-2 and Tier-3 suppliers. The industry supports 1.83 million skilled jobs, including 300,000 directly in the sector, and anchors localised production worth more than Rs300 billion annually. These are savings the economy would otherwise lose to foreign exchange outflows.