New Auto Policy Must Protect Domestic Industry Alongside Attracting Foreign Investment: Iftikhar Ali Malik

*SAARC Chamber former president calls for joint ventures, stronger local manufacturing and up to 50pc domestic content*

*LAHORE, November 6 (3D Media):* Former President of the SAARC Chamber of Commerce and Industry, Iftikhar Ali Malik, has urged the government to ensure protection of Pakistan’s domestic automobile industry under the new auto policy, alongside encouraging foreign direct investment (FDI) and joint ventures with local automobile manufacturers.

In a statement issued on Friday, he said developed economies, including the European Union and China, give priority to protecting and promoting their domestic industries and take all relevant stakeholders into confidence before formulating new policies.

He said Pakistan’s auto parts manufacturing sector comprises around 1,200 companies, directly employing 300,000 people and providing indirect employment to 1.8 million others.

According to Malik, the automobile sector accounts for 4.5 per cent of large-scale manufacturing (LSM), with more than 13 car assemblers and 1,200 auto parts manufacturers operating in the country. The sector also contributes approximately Rs600 billion annually in tax revenues.

He said Pakistan fully welcomes foreign investment in sectors that promote domestic industrialisation, strengthen local manufacturing capacity and help boost the country’s exports. However, safeguarding the interests of local industries must remain a top government priority, as this would strengthen the national economy and create substantial employment opportunities.

Malik further said that the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAPAAM), a representative body of the auto parts industry, had already submitted concrete and viable recommendations to the government for developing a competitive domestic automobile industry with up to 50 per cent local content.

He urged the government to give serious consideration to these proposals, saying that strengthening domestic manufacturing was essential for achieving sustainable economic growth.