In healthy economies, the auto sector is more than an industry—it is a symbol of national purpose, economic confidence, and policy stability. But in Pakistan, it has become a mirror of institutional chaos. Years of policy distortion, bureaucratic silence, and elite capture have hollowed out what should have been a pillar of industrial progress. We romanticise “local assembly” while punishing real manufacturing. We slash duties for luxury imports while burdening the common citizen’s first vehicle. The result: an auto sector that is neither productive, nor just, nor ready for the future.

Across our borders, the transformation is real. India, Vietnam, Bangladesh—nations once behind us—now design engines, produce parts, achieve localisation rates over 90%, and attract long-term investment. Their interest rates are low, electricity is cheap, and policies are stable. Meanwhile, Pakistan lurches from one erratic decision to the next. Growth is penalised. Innovation discouraged. The wealthy are rewarded; the middle class is taxed into paralysis. And we wonder why industry fails.

Our import policy tells the whole story. The G-Wagon—an icon of excess—gets a tax break worth Rs 10 to 20 million. Meanwhile, a 1000cc family car pays an extra Rs 150,000. This is not economic policy. It is a moral failure. It is a mockery of fairness. We subsidise privilege and suffocate need.

Even the much-hyped entry of Chinese automakers—Changan, MG, DFSK, BAIC—has not fixed the problem. These companies entered........

© The Friday Times