Study on the Automotive Sector in Pakistan – Prospects for Regional Trade

Around the world and throughout history the well-being of people has been driven by breakthroughs in technology which range from the simple slingshot which helped David win freedom for his people to today’s space ships which provide the engine for growth to a number of Industries. While the engineering sector is the bedrock of growth of economies, it is generally accepted that the automotive sector is at the forefront of growth. In fact, the ADB [2008] found that the sector is one of the major private sector industries in Pakistan, while Felipe (2007) considered it to be amongst the most protected sectors. The industry was earlier subject to physical indigenisation targets, but following the Uruguay Round it has made a transition to Trade Related Investment Measures (TRIMS).

This study aimed to analyse the structure of the automotive sector in Pakistan and its contribution to the Pakistani economy. It also analyses the policy and regulatory framework in place in terms of domestic and international legislation/treaties. The report concludes by analysing the potential effect of protectionism would be in the automotive industry.

This information will be of use to anyone seeking to understand more about the automotive sector in Pakistan and how it could be expanded/improved.