CCP study slams Auto Sector regulatory fragmentation and high entry barriers stalling industry growth.
From EVs to exports: Islamabad’s fair-competition watchdog outlines roadmap to break market monopolies.
ISLAMABAD: In a move that could disrupt the status quo of Pakistan’s tightly held automobile sector, the Competition Commission of Pakistan (CCP) on Monday released a scathing yet constructive study titled “The Road to Fair Competition.” The report warns that despite decades of protectionist policies, the passenger car market remains concentrated among a few players, leaving consumers with limited choices and high prices.
The CCP’s findings underscore a critical paradox: while the auto sector contributes 2.8% to the national GDP and employs over 215,000 people, it has failed to transition into an export-led industry. The commission identified “structural rigidities” and “policy reversals” as the primary culprits behind the sector’s stagnation.
Breaking the Financing Deadlock Recognizing that skyrocketing car prices have pushed vehicle ownership out of reach for the middle class, the CCP recommended a bold shift in monetary engagement. The report calls for a review of current restrictive financing limits and the introduction of targeted, subsidized financing schemes specifically designed for first-time buyers. This move, if coordinated with the State Bank, could potentially reignite demand in a cooling market.
The EV and Scrappage Frontier The study further points out a vacuum in environmental and safety regulations. Pakistan currently lacks a structured “scrappage policy,” leading to a road network cluttered with obsolete, high-emission vehicles. To fix this, the CCP suggests a phased-out disposal scheme that would simultaneously improve road safety and stimulate demand for newer, more efficient models.
Regarding the transition to Electric Vehicles (EVs), the watchdog was clear: a “coordinated transition” is non-negotiable. It cited inadequate charging infrastructure and a reliance on fossil-fuel-based electricity as the primary hurdles preventing Pakistan from joining the global EV race.
A Level Playing Field The report concludes with a call to dismantle “distortive protections.” By rationalizing tariffs and strengthening the domestic vendor base, the CCP believes Pakistan can finally integrate its auto sector into the global supply chain, shifting from mere assembly to genuine manufacturing and innovation.
The CCP has invited public comments on the study, signaling that this report is intended to be a living document for policymakers.
