Will 2016 Automotive Development Policy benefit automobile industry of Pakistan?

automobile industry of Pakistan

Some people of Pakistan will debate the automobile industry of Pakistan is adored and disliked at the same time. Due to lack of safety precautions, lesser number of availability of options and high-cost vehicles industry gains hatred and one of reason to like; is to upgrade the vehicle with years.

Government updated automotive policy 2016-2021, precisely which claims industry lacks the investors in this field. , deficiency of investors, creates a gap in demand-supply. Another reason is the lateness of delivery, in this industry; the solution referred is to attract investment. Results were not good, but frequently pessimism emerged that auto division will promote investment as well as a rivalry.

In the coming years, Pakistan will be hitting the peak of the auto economy.

Beginners to attract investors

Regardless of, development in sales is not achieved, the government aims to yield 350,000 units by 2021; newcomers have shown growth in deals and choices. Duty organization for completely knocked down (CKD) as well as completely built units (CBU) was decreased from 2017 and predicted to go on till 2021. Government sticks to policy, despite fear, stress, and disapproval.

All through the consolation offered under Greenfield and Brownfield reserves – the past being setting up of a plant to make a “make” not being made in Pakistan, even as the last was implied at vitalizing non-operational or shut procedure at the latest July 1, 2013 – Pakistan saw at any rate three new organizations gnawing hard for a portion of the market cut with a few others attempting to remain in the news with different declarations.


There is a chapter on ‘consumer welfare’ where advance payment on the acquisition of vehicles is discussed. It states that the advance payment cannot be more than 50% of the price and that the “cost and deliverance plan, not above two months, shall be firmed at the time of booking”. Any interruption over two months would cause “discount @ KIBOR plus 2% established on the date of final delivery/settlement from the final payment”. This was meant to reduce delivery lead-time.

Greenfield and Brownfield funds

In the course of encouragement presented under Greenfield and Brownfield funds- previous being setting up of a plant to begin production of segments; that not being made in Pakistan, even as at the end closed operation will be vitalizing on July 1, 2013. It was noticed that three major corporations share a major part of the market, while other companies try to stay in notice with different propagandas. Purpose to mention policy points, as there is a section on client welfare, which discusses payments on the acquisition of vehicles, this also disinterests to read an article about automobiles. It claims that the advance fee should not be more than 50% of the cost, cost and deliverance timetable not be above 60 days, which must be confirmed at the time of booking. Any interruption over two months would cause a discount @ KIBOR plus 2% established on the date of the final agreement from the concluding compensation, aim was to avoid delay on delivery.


In straightforward terms, the government imagined a conveyance season of the most extreme two months. On the off chance that there are delays, which are probably going to occur if a vehicle turns out to be massively demanding, one would envision that orders are ended so the lead time stays under two months. The amount of this is being followed is impossible to say.

Worldwide economic disaster

Pakistan’s auto industry has gone through very difficult durations. In the financial year 2008, construction of vehicles stood above 187,000 units. Then next year – because of, implications of the worldwide economic disaster – creation went down extremely to 99,000 units. One may think that it was heartbreaking and production must be normal these days.


Nevertheless, after such a disaster, the industry was only stable for three years, later on, the yield was reduced from 180,000 to 136,000 between 2012 and 2013. Then other three years of prosperity; which followed again a year of lesser sales, the industry was hit again increase, later on, it is going through hardships till now-massive rupee reduction, high price rises, elevated interest tax, costly vehicles, and if that was not sufficient Covid-19.


One should notice the slow mobility of industry for four months because of Covid-19 that caused 53.5% year-on-year purchase loss, another fact is that industry was not developing in that year. Car sales are affected by more than a few reasons counting entrée to financing, interest charge, prices, new rivals, and in particular, a consumer’s readiness and ability to assign a considerable amount of their income/profits to purchase an asset– depending on how you desire to categorize it – that will reduce eventually.

Public transport system

Through a public transport system that plants a lot to be wanted, the auto area has a great deal pulling out all the stops – a steady approach by an administration that didn’t collapse, and a ‘productive vendor organization’ that can, through the prompt possession premium it charges on new vehicles, measure the amount of a cost increment will be edible. Pundits can contend that the auto area has something reasonable of dangers, yet what business does not. However, if one can not come up with a solid gripe, then one have to keep a long steady approach. Besides more than that by-street travel, and an import obligation structure is created for securing the neighborhood business.


With the auto approach set to terminate this year, and the appearance of new vehicles probably attracting to a nearby also, the public authority now needs to plunk down, audit, and chalk out a far-reaching plan for the following decade. It’s generally shown a piece of its hand by referencing electric vehicles and is probably going to be more climate amicable than any past government. However long customer government assistance is to put to the front, Pakistan’s affection for the auto area will best its scorn for it.

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