The Government of Pakistan officially reaffirmed its commitment to Japanese investors at the Japan-Pakistan Business Seminar 2026 in Islamabad. Speaking as the chief guest, Haroon Akhtar Khan, Special Assistant to the Prime Minister (SAPM) on Industries and Production, addressed the long-standing concerns of Japanese firms, particularly in the automotive sector.
The seminar, organized by the Embassy of Japan in collaboration with JETRO and JICA, focused on moving from “short-term transactions” to “long-term strategic partnerships.”
“Pakistan is Listening, Pakistan is Acting”
The government’s primary objective was to reassure the “Big Three” Japanese automakers—Toyota, Suzuki, and Honda—who have been the backbone of the local industry for decades.
- Addressing Major Hurdles: SAPM Haroon Akhtar acknowledged critical pain points, including:
- Tax Refunds: Commitments were made to expedite pending sales tax and income tax refunds.
- Export Obstacles: The government promised to streamline regulatory processes to help automakers meet the mandatory 10% export target set for 2026.
- Economic Impact: Japanese Ambassador Akamatsu Shuichi noted that Japanese firms have created over 100,000 jobs in Pakistan and achieved a localization rate exceeding 60% for vehicle parts.
- Industrial Vision: The seminar highlighted Japan’s “Kaizen” philosophy (continuous improvement) as a model for Pakistan to upgrade its outdated manufacturing technology.
The 2026 Roadmap
Beyond automobiles, a secondary meeting between the Pakistan-Japan Business Forum (PJBF) and the PM’s Coordinator on Commerce, Rana Ihsaan Afzal Khan, outlined specific trade goals:
| Focus Area | Proposed Action |
| Production Costs | Efforts to lower electricity tariffs and expand the Export Facilitation Scheme (EFS). |
| Market Access | Specialized training programs to help Pakistani products meet high-quality Japanese compliance standards. |
| Innovation | Strengthening university-industry linkages to absorb Japanese technical expertise. |
| Revival of “Sick” Units | Using Japanese investment to modernize stagnant industrial units, including discussions on Pakistan Steel Mills (PSM). |
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The “Export or Perish” Challenge
While the government is wooing investors, Japanese firms remain cautious. Industry analysts at the seminar noted that for Pakistan to truly integrate into Japan’s global supply chain, it must address:
- High Utility Rates: Current electricity prices remain a hurdle for competitive manufacturing.
- Import Policies: Local manufacturers expressed concern over the “misuse” of used car import schemes, which they claim undermines domestic production.
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