Pakistan Automotive Manufacturers Association (PAMA) has expressed concerns that more international companies could exit Pakistan due to what it describes as “regressive and exploitative” policies.
As per reports, Abdul Waheed Khan, Director General of PAMA, stated that foreign direct investment (FDI) in Pakistan’s auto sector has remained minimal, with major global companies like Shell, Uber, Careem, Microsoft, and Telenor already having exited the market.
Regarding Yamaha’s departure, Khan explained that the company’s exit was linked to Pakistan’s policy requiring automakers to meet mandatory export targets to qualify for the import of raw materials and components. He criticised the policy, arguing that it is disconnected from the country’s economic realities and has negatively impacted the struggling auto sector.
Yamaha, which re-entered Pakistan in 2015 with a $100 million investment, has now exited despite progress in localization, technology transfer, and job creation. The company had been the only one, aside from Honda, to localize engine production in Pakistan.
Khan also voiced concerns about the recently introduced Motor Vehicle Development Act 2025, which criminalises routine business practices. He warned that such measures—potentially leading to arrests and lengthy sentences for business-related issues—could deter foreign investors from considering Pakistan as a viable market.
The PAMA official’s remarks reflect growing frustration within the industry, which fears that the current regulatory environment could further stifle investment and hinder the growth of Pakistan’s automotive sector.
