The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has reaffirmed its commitment to strengthening the country’s auto parts industry, describing it as a key contributor to industrial development, employment generation and import substitution, according to a statement on Monday.

PAAPAM Chairman Usman Malik said the local auto parts industry has invested billions of rupees over decades in manufacturing facilities, tooling, engineering capabilities and quality systems. The sector supports thousands of direct and indirect jobs, he said.

Malik said Pakistan’s auto parts manufacturers possess the capability to produce internationally competitive products. However, unlocking the sector’s full potential requires consistent industrial policies, competitive energy tariffs, affordable financing, export facilitation and a stable investment environment.

Former Chairman Aamir Allawala said recent comparisons between Pakistan’s auto industry and the JF-17 Thunder programme overlook the fundamentally different nature of the two sectors. He explained that the JF-17 was a strategic national programme supported by long-term government commitment, sustained public investment and assured institutional demand, whereas the auto parts industry operates on private investment, market-driven demand and evolving fiscal policies.

The comparison, he said, highlights the importance of policy continuity, long-term planning and a supportive business environment for sustainable growth of any manufacturing sector.

Allawala further said addressing structural challenges such as high energy costs, expensive financing, taxation, logistics constraints and limited market access would significantly enhance the competitiveness of Pakistan’s auto parts industry.