PAMA Warns of Uncertainty as Yamaha Exits Pakistan
KARACHI: The Pakistan Automotive Manufacturers Association (PAMA) has raised serious concerns over the future of the country’s automobile sector, warning that more global companies may leave Pakistan if “regressive and exploitative” policies continue.
Yamaha’s Exit Sparks Alarm
According to PAMA Director General Abdul Waheed Khan, the recent exit of Yamaha is a clear signal of declining investor confidence. Yamaha, which re-entered Pakistan in 2015 with a $100 million investment, contributed to localisation, technology transfer, and job creation. It was also the only company after Honda to localise engine production.
However, after just a decade, Yamaha has now pulled out. Mr. Khan explained that automakers are bound by laws requiring mandatory export targets in order to qualify for raw material and component imports. “This policy is unrealistic and damaging, and has become the last nail in the coffin for the struggling auto industry,” he added.
Foreign Investors Already Pulling Out
Mr. Khan also highlighted that foreign direct investment in Pakistan’s auto sector remains negligible. Several major global firms — including Shell, Uber, Careem, Microsoft, and Telenor — have already exited the market, citing regulatory hurdles and an unfavorable business climate.
He further criticised the Motor Vehicle Development Act 2025, which treats civil issues as criminal offences. “Criminalising routine business activities with the threat of arrests and long sentences is catastrophic for foreign investors,” Mr. Khan said.
IMC Outlook: Floods Slow Down Sales
In a separate development, Indus Motor Company (IMC) briefed analysts about the impact of recent floods, which have slowed vehicle sales. Despite this, industry experts believe the total car market (including imported used cars) could have surpassed 300,000 units in FY26, compared to 223,799 units in FY25, if not for the disruption.
