Pakistan & Gulf Economist

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Toyota Reinforces Leadership in Inclusive Employment at Reverse Career Expo

Indus Motor Company (IMC), under its Concern Beyond Cars initiative, reinforced its commitment to building a more diverse and inclusive workforce by serving as the title sponsor of the Reverse Career Expo 2.0, an innovative recruitment platform designed to connect employers with talented Persons with Disabilities (PWDs). Organized by ASHREITECH Academy at the National Aerospace Science & Technology Park (NASTP), Karachi, the event brought together leading employers, industry leaders, government representatives and disability support organizations to promote inclusive hiring and equitable employment opportunities.

Unlike conventional job fairs where employers showcase vacancies, the Reverse Career Expo places candidates at the center of the recruitment process. PWDs host individual booths to present their skills, qualifications and career aspirations, while employers engage directly with prospective talent. By reversing traditional hiring dynamics, the initiative challenges unconscious bias, encourages skills-based recruitment and reinforces the principle that ability—not disability—should define employment opportunities.

By supporting the initiative for the second consecutive year, IMC demonstrated that diversity, equity and inclusion are integral to its people strategy and long-term vision of creating workplaces where everyone has an equal opportunity to contribute and succeed. The company’s participation reflects its belief that businesses have a vital role to play in removing barriers to employment and fostering environments where diverse talent can thrive.

Commenting on the occasion, Mr. Ali Asghar Jamali, Chief Executive Officer, Indus Motor Company, said:

“At Indus Motor Company, we believe diversity and inclusion are fundamental to building stronger organizations and stronger communities. Every individual deserves the opportunity to contribute, grow and succeed based on their talent and potential. Supporting initiatives like the Reverse Career Expo reflects our commitment to fostering workplaces where barriers are removed, abilities are recognized and equal opportunity becomes a reality. This commitment is closely aligned with Toyota’s global vision of ‘Mobility for All’—empowering people not only through transportation, but by creating greater access to opportunity, independence and a better quality of life.”

As organizations increasingly recognize that diverse teams drive innovation, creativity and business resilience, initiatives such as the Reverse Career Expo are helping redefine inclusive recruitment in Pakistan. Through sustained collaboration with industry, academia and the public sector, IMC continues to champion practices that expand access to meaningful employment and contribute to a more inclusive and equitable future for all.

UBL National Innovation Hackathon 2026 Kicks Off at NIC Karachi

The National Incubation Center Karachi (NIC Karachi), an Ignite-funded initiative under the Ministry of IT & Telecom, in collaboration with United Bank Limited (UBL), has launched the UBL National Innovation Hackathon 2026, bringing together 25 teams from across Pakistan for a 72-hour challenge to develop cutting-edge solutions for the country’s financial, banking, and payments ecosystem. Competing for a grand prize of Rs5 million, the hackathon has attracted a diverse pool of participants, including students, startups, software professionals, researchers, innovators, and technology enthusiasts. More than a competition, the initiative serves as a launchpad for innovation, offering high-potential teams continued mentorship, incubation to refine their ideas into scalable, market-ready solutions capable of driving the future of digital finance in Pakistan.

Abdur Rehman, Head of Creative Technology at UBL, in the opening remarks encouraged teams to focus on creating solutions that solve genuine customer problems. He stated that while the hackathon is a competition, its true value lies in experimentation, collaboration, and learning. He highlighted the growing role of artificial intelligence, machine learning, and data analytics in reshaping financial services and encouraged participants to build practical, customer-centric solutions capable of delivering meaningful impact. He added that UBL views innovation as a key pillar of its digital transformation strategy and looks forward to supporting ideas that can contribute to the future of banking in Pakistan.

Speaking at the opening ceremony, Syed Azfar Hussain, Project Director at NIC Karachi said, “The UBL National Innovation Hackathon is much more than a competition. It is a platform designed to bring together students, entrepreneurs, researchers, software houses, and technology professionals to solve real challenges facing Pakistan’s financial sector. Through our partnership with UBL, we aim to identify exceptional talent, foster meaningful collaboration, and equip innovators with the mentorship, industry exposure, and resources needed to transform ideas into impactful products. This initiative also marks the beginning of a longer innovation journey through the UBL-powered FinTech Lab, where promising teams will continue refining their solutions and preparing them for real-world deployment.”

The UBL National Innovation Hackathon 2026 reflects NIC Karachi’s continued commitment to fostering innovation through meaningful industry partnerships. By connecting emerging talent with one of Pakistan’s leading financial institutions, the initiative aims to accelerate the development of next-generation FinTech solutions that promote financial inclusion, strengthen digital transformation, and contribute to the country’s economic growth.

Recurrent Urban Flooding Becomes a Serious Economic Emergency; Govt. should shift from post-disaster relief to preventive climate-resilience policies : Mian Zahid Hussain

President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman FPCCI Policy Advisory Board and Former Provincial Minister Mian Zahid Hussain has said that recurrent urban flooding has now become a serious economic emergency and should no longer be treated as a routine seasonal problem. He expressed profound grief over the loss of precious lives during the recent monsoon rains and said that floods caused by intense rainfall and climate change bring urban life to a standstill. Commercial and industrial production is disrupted in both large and small cities, markets are forced to close, transport and electricity systems are affected, and the movement of goods to ports and domestic markets is suspended.

Mian Zahid Hussain said that past disasters clearly demonstrate the economic severity of this threat. Urban flooding in Karachi during 2025 caused estimated losses of Rs14 to Rs15 billion to the business community within only two days, while more than 1,000 shops and warehouses were affected. Similarly, the closure of commercial activities during the 2020 floods caused estimated losses of Rs10 to Rs12 billion in Karachi alone. He said that the devastating nationwide floods of 2022 clearly demonstrated how agricultural destruction can rapidly turn into an industrial crisis. According to the official Post-Disaster Needs Assessment, 1,739 precious lives were lost, while agriculture, food, livestock and fisheries suffered approximately Rs800 billion in direct damage and Rs1.986 trillion in economic losses. Crops accounted for 82 percent of the combined damage and losses suffered by these sectors, amounting to approximately Rs2.285 trillion. Around 4.4 million acres of agricultural land were affected, nearly 800,000 livestock perished, and cotton, dates, sugarcane and rice crops suffered extensive destruction.

Mian Zahid Hussain said that the destruction of cotton during the 2022 floods was particularly alarming because locally produced cotton meets approximately half of the textile industry’s requirements. The textile sector accounts for almost one-fourth of industrial production and more than half of Pakistan’s merchandise exports. He said that floodwater entering agricultural fields does not only harm farmers. It shuts down ginning factories, deprives spinning mills of cotton, reduces sugar-mill crushing, damages rice exports, destroys poultry, dairy, livestock, and increases the prices of animal feed.

Mian Zahid Hussain said that shortages of locally produced cotton increase imports and raise the cost of textile production. Damage to sugarcane affects the production of sugar, ethanol, molasses and bagasse-based electricity. Destruction of rice crops causes losses to rice mills, exporters, packaging companies and transporters, while shortages of maize and fodder increase the prices of milk, meat, eggs and poultry products. He urged the government to establish a transparent Monsoon Economic Damage Dashboard, containing details of affected agricultural land, crop losses, closed industrial units, damaged warehouses, production stoppages, delays in export consignments, road closures and electricity disruptions.

Mian Zahid Hussain also demanded independent audits of inactive drainage systems in major cities, effective cleaning and de-silting of drains, removal of encroachments, enhancement of pumping capacity and strict action against construction on natural waterways. He said that proper flood-response and business-continuity plans should be prepared for industrial estates, export zones and wholesale markets. Banks should provide emergency working capital to flood-affected small and medium-sized enterprises, while the coverage of crop, livestock and business insurance should also be expanded.

Mian Zahid Hussain said that defects in protective infrastructure, negligence and delays repeatedly transfer the cost of disasters to the public, taxpayers, consumers, exporters and small businesses. He added that Pakistan must replace its excessive reliance on post-disaster relief programmes with a comprehensive policy of prevention and preparedness to protect human lives, food security, industrial raw materials, exports and economic stability, and to ensure continuity in economic and social activities.

Cement despatches increased by 6.02% during Jul-26, exports slump

Cement despatches increased by 6.02% in Jul-26. Total Cement despatches during Jul-26 were 4.476 million tons against 4.222 million tons despatched during the same month of last fiscal year.

According to the data released by All Pakistan Cement Manufacturers Association, local cement despatches by the industry during the month of Jul-26 were 3.771 million tons compared to 3.215 million tons in Jul-25, showing an increase of 17.28%. Exports despatches, on the other hand, declined by massive 29.95% as the volumes reduced from 1.007 million tons in Jul-25 to 705,341 tons in Jul-26.

In Jul-26, North based cement mills despatched 3.092 million tons cement showing an increase of 9.46% against 2.825 million tons despatches in Jul-25. South based mills despatched 1.383 million tons cement during Jul-26 that was 0.95% less compared to the despatches of 1.397 million tons during Jul-25.

North based cement mills despatched 3.092 million tons cement in domestic markets in Jul-26 showing an increase of 19.25% against 2.593 million tons despatches in Jul-25. South based mills despatched 678,147 tons cement in local markets during Jul-26 that was 9.07% more compared to the despatches of 621,744 tons during Jul-25.

Compared to exports of 231,985 tons from North based mills in July-25, there were no exports during July-26. Exports from South reduced by 8.98% to 705,341 tons in Jul-26 from 774,966 tons during the same month last year.

A spokesman of APCMA said that local uptake could further boost up, provided government reduces duties and taxes on cement, that will benefit the end consumers. Cement is not a luxury item but is an essential commodity for masses. Heavy rains are affecting most parts of the country and government should provide necessary relief for rehabilitation of the affected areas, he added.

FPCCI and United Business Group’s Pakistan Economic Summit 2026 Sets New Hope for Pakistan’s Prosperity; District Autonomy is Key to Sustainable Development, Poverty Reduction and Export Growth: Mian Zahid Hussain

Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum (PBIF) and the All Karachi Industrial Alliance (AKIA), Chairman of the National Business Group Pakistan (NBG), Chairman of the FPCCI Policy Advisory Board, and former Provincial Minister, has congratulated Mr. Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Mr. S. M. Tanveer, Patron-in-Chief of the United Business Group (UBG), the organizers, chambers of commerce from across the country, trade associations, participants, and supporters on the successful organization of the First Pakistan Economic Summit 2026, held under the auspices of FPCCI and the United Business Group.

Speaking to the business community, Mian Zahid Hussain stated that the two-day national economic conference held in Jinnah Convention Centre, Islamabad demonstrated that Pakistan’s traders, industrialists, exporters, investors, businesswomen, economists, and representatives from various sectors are united on a common national economic agenda, rising above regional and sectoral interests. He said that the enthusiastic participation of the business community from all four provinces, Gilgit-Baltistan, Azad Jammu & Kashmir, and districts across the country—including chambers of commerce, women chambers, small chambers, sectoral associations, and the corporate sector—gave the Summit a truly national character. The platform provided an excellent opportunity to highlight local industries, business challenges, export opportunities, investment requirements, and proposals for economic reforms at the national level, which is a historic and highly encouraging development.

Mian Zahid Hussain stated that Pakistan cannot achieve balanced and sustainable economic development as long as planning, financial resources, and administrative authority remain centralised in the federal and provincial capitals. Pakistan’s economic future lies in district-level autonomy, as employment, industry, agriculture, trade, infrastructure, law and order, public services, and other civic issues are fundamentally linked with the local population living in districts and union councils. He further stated that, alongside District Autonomy, Union Councils must also be administratively and financially empowered. Weak, inactive, and resource-constrained Districts and Union Councils cannot serve as the foundation of a strong governance system. Union Councils are best positioned to identify the genuine needs and priorities of local communities, while autonomous district governments can transform those needs into integrated development plans that bring prosperity to the people for a stronger Pakistan.

Mian Zahid Hussain further stated that District Autonomy can immediately improve tax collection, roads, water supply, drainage, healthcare, education, skills development, markets, industrial zones, agricultural support services, and digital public services. A district-based governance system operating from the grassroots upward would strengthen public accountability, accelerate the implementation of development projects, and reduce unnecessary administrative burdens on provincial governments. He further emphasized that district Economic Autonomy should not remain subject to temporary administrative orders or changing political arrangements; rather, it should be accorded clear and permanent constitutional protection through a constitutional amendment. The administrative, financial, and economic powers of districts, revenue collection mechanisms, fiscal distribution arrangements, institutional continuity, and performance standards should be constitutionally defined.

Mian Zahid Hussain further proposed that, alongside the Deputy Commissioner, District Police Officer (DPO) and many other district officers, a “District Economic Commissioner”, should be appointed in each district, supported by a District Economic Secretariat. The District Economic Commissioner should prepare a comprehensive economic profile of the district, facilitate investors, and mobilize the capabilities of local governments, district chambers of commerce, trade associations, sectoral associations, industrialists, farmers, SMEs, women entrepreneurs, universities, and technical experts to promote ease of doing business, value addition, and exports. The District Economic Commissioner should also serve as the focal point for economic coordination between the federal and provincial governments and present an annual performance report to the public.

Mian Zahid Hussain further stated that the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), being the country’s largest representative organization of traders and industrialists, should be institutionally linked with District Economic Commissioners so that locally produced goods from every district can be promoted at both the national and international levels through FPCCI’s extensive network. Likewise, FPCCI may be assigned an important role in disseminating information on emerging global economic and business trends to district chambers of commerce and local businesses. He stated that the proposed system would enable all districts of Pakistan to make a meaningful contribution towards exports, value addition, e-commerce, industrial production, investment, innovation, employment generation, and national prosperity.

Mian Zahid Hussain stated that the First Pakistan Economic Summit, organized by FPCCI and the United Business Group, has played a significant role in uniting the business community around the common objective of economic recovery. He emphasized that the next step is to transform this success into a practical framework for national development based on the concept of the District Autonomy.

UBL Strengthens Its Leadership in Investment Banking with Seven Prestigious International Awards in 2026

United Bank Limited (UBL) has reinforced its position as a leading financial institution by securing seven prestigious international accolades since January 2026, underscoring its unwavering commitment to excellence, innovation, and client-centric solutions across Pakistan’s financial sector.

The recognition spans some of the world’s most respected financial award platforms and highlights UBL’s leadership in investment banking, Islamic finance, sustainable financing, and syndicated lending. Among its most notable achievements are:

UBL’s continued excellence in corporate and investment banking was also acknowledged at:

These accolades reflect UBL’s steadfast dedication to delivering innovative financing solutions, strengthening Pakistan’s capital markets, and creating sustainable value for its clients and stakeholders. The awards also reaffirm the Bank’s ability to execute landmark transactions that contribute meaningfully to the country’s economic growth while meeting the evolving needs of businesses and investors.

UBL extends its sincere gratitude to its valued clients, trusted partners, and dedicated teams whose confidence, collaboration, and unwavering support have been instrumental in achieving this significant milestone. The Bank remains committed to setting new benchmarks of excellence and continuing to drive innovation across Pakistan’s financial landscape.

Wafi Energy invests in Pakistan’s energy storage and inaugurates new motor gasoline tank at Tarru Jabba

Peshawar, August 6th, 2026: Wafi Energy Pakistan Limited inaugurated a 7.4 million litre motor gasoline storage tank at its Tarru Jabba terminal in Nowshera, Khyber Pakhtunkhwa. This newly constructed facility expands Pakistan’s fuel storage infrastructure and marks company’s latest investment in Pakistan’s energy industry.

As Pakistan’s energy needs continue to grow, this new storage tank strengthens reliability of fuel supply for customers, including on major travel routes to the country’s tourism destinations. The inauguration ceremony was attended by representatives from the Oil and Gas Regulatory Authority (OGRA), led by Sohail Ahmed Tariq, Senior Executive Director (Enforcement), OGRA, alongside Wafi Energy Pakistan’s team.

Zubair Shaikh, Chief Executive Officer, Wafi Energy Pakistan, said, “Since 1947, this company has been serving Pakistan. I am proud of the team that built this tank and brought it into service. Pakistan’s demand for fuel keeps growing and we are continuing to invest in energy security for the country. Reliable supply depends on how much you can store and how close that storage is to your customers. This investment strengthens our ability to serve customers while supporting the continued growth of our Shell network across Pakistan.”

Construction of the new storage tank was completed over one year, with 300,000 work-hours delivered safely. The investment strengthens Wafi Energy Pakistan’s growing Shell retail network, which now spans more than 700 sites nationwide following the addition of 32 new sites in 2026. It is another step in the company’s long-term commitment to investing in Pakistan’s energy needs and supporting the country’s continued growth.

Pak-China pharmaceutical agreements are game changer, should transform to reality, technology transfer and exports: Mian Zahid Hussain

President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman FPCCI Policy Advisory Board and Former Provincial Minister Mian Zahid Hussain has welcomed the major pharmaceutical and healthcare agreements signed between Pakistani and Chinese companies, describing them as an important opportunity to reduce import dependence, strengthen health security and develop a new export-oriented industry. He said the Pakistan-China Pharmaceutical and Healthcare B2B Conference produced 22 commercial agreements worth $629.5 million and 84 memoranda of understanding with an estimated value of around $800 million. The event brought together 240 Chinese delegates representing 140 companies and 430 Pakistani delegates from 210 companies, while 340 bilateral business meetings were also conducted.

Mian Zahid Hussain said the agreements cover strategically important areas, including eight projects for local vaccine production, eight for medical-device manufacturing, two for active pharmaceutical ingredients, two for clinical trials and two for generic formulations and injectable medicines. These commitments should be converted into operational plants through clearly defined investment schedules, local employment targets and mandatory technology-transfer arrangements. He said Pakistan manufactures nearly 85 percent of its finished pharmaceutical products domestically, but imports approximately 95 percent of the raw materials used to produce medicines. This dependence exposes medicine prices and supplies to exchange-rate depreciation, international freight costs and global supply disruptions. Local production of active pharmaceutical ingredients can save foreign exchange, improve supply-chain security and reduce pressure on patients.

The veteran business leader noted that Pakistan currently imports 13 vaccines administered under the national immunisation programme, while the cost of imported vaccines has been projected to reach $1.2 billion by 2030. The newly approved National Local Vaccine Production Policy, combined with Chinese investment and biotechnology expertise, can help Pakistan build domestic capacity in vaccines, biological products and cold-chain technologies. He said Pakistan’s pharmaceutical exports reached a record $457 million in FY2024-25, increasing by 34 percent and reaching more than 80 international markets. However, this performance remains far below the country’s potential, particularly given its large domestic manufacturing base, skilled workforce and access to markets in Central Asia, the Middle East and Africa.

Mian Zahid Hussain observed that pharmaceutical production contracted by 5.1 percent during July–March FY2026, compared with growth of 2.3 percent in the corresponding period of the previous year. The new investments should reverse the slowdown through modern machinery, research and development, international certifications and export-focused production. He appreciated the efforts of Prime Minister Shehbaz Sharif, the Ministry of National Health Services, DRAP, TDAP, the Board of Investment and Pakistan’s embassy in China for facilitating the agreements. He also welcomed the digitisation of approximately 85 percent of DRAP’s regulatory processes and the reduction of medical-device approval time to around 20 days.

Mian Zahid Hussain said that signing trade agreements is only the first step. A joint implementation cell should be established to public quarterly progress report on investment received, factories established, jobs created, import substitution achieved and exports generated. Success should be measured by production, technology transfer and foreign-exchange earnings rather than the number of MoUs signed.

Balochistan, LUMS Sign MoU to Strengthen Maternal and Child Health Through AI

The Government of Balochistan and the National AI Hub for Maternal, Newborn and Child Health (MNCH), based at Lahore University of Management Sciences (LUMS), have signed an MoU to establish a strategic partnership aimed at strengthening maternal, newborn, and child health services through artificial intelligence (AI), digital innovation, and evidence-informed decision-making.

The MoU reflects a shared commitment to harnessing emerging technologies to address persistent health challenges and improve outcomes for women, newborns, and children across Balochistan. Through the collaboration, the Government of Balochistan and the National AI Hub will identify priority areas where AI-enabled solutions can strengthen health systems, enhance service delivery, and inform policy and planning.

The signing ceremony at LUMS brought together senior officials from the Government of Balochistan, University leadership, researchers, public health specialists, and technical experts. The Government of Balochistan delegation was led by Mr. Mujeeb-ur-Rehman, Secretary Health, and included Dr. Shahkoh Mengal, Chief, Health Sector Reforms Unit; Dr. Ababgar Baloch, Provincial Coordinator, Balochistan Health Management Information System (BHMIS); Dr. Muhammad Dawood, Director Technical, Health Department; Dr. Sher Afghan Raisani, Provincial Coordinator, Health Department; and Dr. Asfanyar Sherani, Head of the WHO Sub-Office, Balochistan. The delegation also included Mr. Jahangir Bazai, Senior Consultant, and representatives from the Poverty Eradication Initiative (PEI), Balochistan, including Mr. Ahsan Azam and Mr. Muhammad Imran. UNICEF Balochistan also participated virtually.

Participants discussed Balochistan’s MNCH priorities, its evolving digital health landscape, and opportunities to use AI and locally grounded data to strengthen health services across the province.

Dr. Tariq Jadoon, Provost and Acting Vice Chancellor, LUMS, said, “This partnership with the Government of Balochistan presents an exciting opportunity. Through the National AI Hub, we are leveraging computer science, artificial intelligence, and machine learning to improve people’s health, and we are pleased to contribute to this important work.”

Welcoming the delegation, Dr. Walter Schwarzacher, Dean, Syed Babar Ali School of Science and Engineering at LUMS, said, “The work being done by the National AI Hub provides a way to take the fundamental research carried out at LUMS and apply it in ways that bring real benefits. This is an area in which we can demonstrate that AI can make a tangible difference to people’s health and lives.”

Dr. Maryam Mustafa, Director of the National AI Hub, and Associate Professor of Computer Science, emphasised that the partnership would be grounded in Balochistan’s specific context and priorities. She said, “Balochistan should not be seen merely as a deployment site. We want to understand what home-grown, localised, and contextualised tools for Balochistan, built in Balochistan, should look like. By involving partners from the design phase, we can help ensure that what is built is adopted, has longevity, and serves the province’s needs.”

Speaking on behalf of the Government of Balochistan, Mr. Mujeeb Ur Rehman, Secretary, Health Department, said, “This is not just another project for us. It is a project through which we hope to improve maternal, newborn, and child health indicators. LUMS brings the technology and expertise, and we bring the commitment to address the challenges we face. Together, this partnership can deliver the results we are seeking.”

The partnership will focus on collaborative research, capacity strengthening, and the co-development, piloting, and rigorous evaluation of AI-enabled solutions. It will also generate evidence to support policy and programme implementation. Potential areas of collaboration include digital health, health information systems, predictive analytics, clinical decision support, local-language health tools, and responsible AI for public health.

The collaboration will prioritise solutions designed with, rather than simply deployed in, Balochistan. This approach will help ensure that new tools respond to the province’s infrastructure, languages, public health priorities, and service-delivery realities, while creating a pathway from evidence generation to responsible scale-up.

The National AI Hub for MNCH serves as a national platform for advancing the responsible use of artificial intelligence and digital innovation to improve maternal, newborn, and child health in Pakistan. Through partnerships with governments, academia, healthcare providers, and development partners, the Hub translates research into scalable solutions that strengthen health systems and expand equitable access to quality care.

The collaboration with the Government of Balochistan marks an important step towards developing locally relevant, evidence-based innovations that support the province’s health priorities and contribute to Pakistan’s broader digital health agenda.

Automobile Tariff Policy Must Balance Competition and Local Industry; Automobile Policy 2026-31 Should be Linked with Localization, Technology Transfer and Exports: Mian Zahid Hussain

Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, and Former Provincial Minister Information Technology, has warned that abrupt tariff reductions on completely built-up vehicles (CBUs) could weaken local manufacturing, discourage investment and accelerate deindustrialisation. He said that competition and affordable vehicles are important for consumers, but Pakistan cannot achieve sustainable economic development by replacing locally assembled products with imported finished goods. The objective of tariff reforms should be to reduce inefficiencies, improve quality and encourage exports—not to discourage local factories, eliminate vendor industries and increase dependence on foreign exchange-intensive imports. He further added that the National Tariff Policy envisages gradually reducing the maximum customs-duty slab and bringing tariffs on completely built-up vehicles down from 20 percent to 15 percent over five years. He cautioned that such reductions must be synchronized with a comprehensive automobile policy based on localisation, technology transfer, export development and consumer protection.

Mian Zahid Hussain pointed out that Pakistan’s automobile market has recently shown a strong recovery. According to the Pakistan Automotive Manufacturers Association, passenger-car sales increased from 112,203 units in FY2024-25 to 155,631 units in FY2025-26, representing growth of approximately 38.7 percent. However, the recovery remains fragile because the industry is still operating substantially below its installed capacity. Additionally, he noted that automobile manufacturers have an estimated annual installed capacity of around 500,000 vehicles, but the sector is reportedly operating at less than 50 percent of this capacity. Industry representatives have also stated that approximately 45,000 completely built-up vehicles enter the country annually, accounting for nearly 18 percent of the domestic market. Lowering tariffs without improving production volumes and competitiveness could therefore make imported vehicles more attractive than locally manufactured alternatives.

The veteran business leader also highlighted that the automobile industry is not limited to a few vehicle-assembly plants. It supports an extensive network of parts manufacturers, engineering companies, dealerships, workshops, transporters and other service providers. A sector assessment by VIS Credit Rating Company estimates that the automobile industry contributes around 2.8 percent to GDP, provides approximately 215,000 direct jobs and is connected with a vendor base of nearly 2,200 firms. He further added that the Competition Commission of Pakistan has identified more than 1,200 registered automobile-parts manufacturers operating mainly in Karachi, Lahore, Gujranwala and other industrial centres. These companies represent an important source of domestic value addition, technical skills and employment. Once such supply chains are dismantled, rebuilding them requires years of investment, training and technological development.

Mian Zahid Hussain observed that the threat is particularly serious from uncontrolled imports of used vehicles. The Competition Commission’s automobile-sector study stated that more than 38,000 used cars were imported during FY2024–25, accounting for nearly one-fourth of passenger-vehicle sales. The study estimated that these imports resulted in approximately Rs60 billion in revenue losses for the local industry and more than 40,000 potential jobs being forgone. He further clarified that the business community is not demanding unlimited protection for inefficient manufacturers. Protection without measurable performance has previously encouraged assembly operations without developing sufficiently competitive engineering, research, component manufacturing or export capabilities. Any tariff differential provided to local manufacturers should therefore be temporary, transparent and linked with binding targets for localisation, exports, technological upgrading, fuel efficiency and vehicle safety.

Mian Zahid Hussain said that assemblers receiving tariff advantages must be required to publish model-wise localisation levels, reduce dependence on imported kits, establish local research and development facilities and provide long-term procurement opportunities to Pakistani parts manufacturers. Incentives should be connected with actual production, exports and technology transfer instead of the mere establishment of assembly plants. He also added that consumers must also receive the benefits of industrial protection. The government should introduce strict standards regarding vehicle quality, warranty coverage, delivery periods, price transparency, spare-parts availability and the elimination of illegal “on-money” premiums. The Competition Commission has also highlighted long delivery periods, arbitrary price increases, limited model choices and on-money practices as consumer-welfare concerns requiring stronger regulatory oversight. He urged the government to immediately finalise the delayed Automobile Industry Development and Export Policy 2026-31 after meaningful consultation with assemblers, parts manufacturers, consumer representatives, FPCCI and independent economic experts. He said that continuing policy uncertainty is already delaying investment decisions, production planning, technological upgrading and expansion across the vendor industry.

Mian Zahid Hussain stressed that Pakistan needs a balanced automobile policy that protects consumers from excessive prices while also protecting the country from premature deindustrialisation. Tariffs should be reduced gradually when domestic manufacturers achieve scale, productivity and export competitiveness. Pakistan must move from simple vehicle assembly toward engineering, component manufacturing, electric-vehicle technology and regional exports; otherwise, tariff liberalisation will merely exchange local employment for higher imports and greater pressure on the country’s foreign-exchange reserves.

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