Iftikhar Malik calls for review of auto policy to promote local manufacturing

LAHORE, September 6 (APP): Former President of the SAARC Chamber of Commerce and Industry Iftikhar Ali Malik on Sunday called for a review of the country’s auto policy to strengthen local industries and achieve self-reliance in the manufacturing of auto parts.

In a statement issued here, he said Pakistan should position itself as a base for export-oriented investment, particularly for Chinese electric vehicle (EV) manufacturers seeking to diversify production and access regional markets.

He said achieving this objective would require predictable policies, competitive energy costs, efficient logistics, easier access to imported inputs and trade agreements providing genuine market access.

Iftikhar Ali Malik said Pakistan must avoid designing industrial policies around outdated technologies. He termed hybrid vehicles a practical bridge toward cleaner mobility as they reduce fuel consumption and emissions without depending entirely on charging infrastructure or a reliable electricity network.

He said the policy objective should be to increase domestic value addition, boost exports, reduce environmental impact and develop deeper technological capabilities. Pakistan’s IT sector should also contribute to the development of connected vehicles, while commercially viable minerals should be used to develop domestic battery-material and mobility supply chains instead of being exported with minimal processing.

He said the global automotive industry was shifting from internal combustion engines towards hybrid and electric vehicles, fundamentally changing where value was created. EVs eliminate or simplify many components around which Pakistan’s traditional localisation strategy had been built.

He said Japan, South Korea, China and Thailand had supported their automotive industries through protection that was temporary and conditional, linking incentives to exports, productivity, technology transfer and industrial upgrading. India developed its auto sector behind restrictions on consumer choice, while ASEAN and Mercosur countries leveraged regional production networks to achieve economies of scale. Pakistan, he added, should draw lessons from these experiences.

Iftikhar Ali Malik said tariffs in Pakistan should be reduced through a transparent and predictable schedule that gives businesses sufficient time to adjust while ensuring that firms continue to improve their competitiveness.

The government, he said, must also reduce economy-wide costs through reforms in energy, logistics and taxation, while linking any remaining incentives to exports, domestic value addition, engineering capabilities and high-value hybrid and EV technologies.