A Pakistani three-wheeler may be modest machinery, but its journey to the Philippines marks a rather sizeable step for Pakistan’s manufacturing sector. Philippine President Ferdinand Marcos Jr. inaugurated Sazgar Engineering Works’ first overseas assembly plant on Thursday, with the facility capable of assembling 12,000 three-wheelers annually. Electric models are expected to account for 60 per cent of initial production.
It goes without saying that Sazgar’s achievement did not materialise overnight. The Lahore-based company has spent more than three decades building its manufacturing credentials and now exports to over 20 countries, including Japan, Sri Lanka and the UAE. Its arrival in Southeast Asia, facilitated by the Pakistan Embassy in Manila, shows what determined enterprise and purposeful economic diplomacy can accomplish. That the Philippine government sees a Pakistani manufacturer as a partner in its industrial ambitions should give Islamabad considerable satisfaction.
Still, the achievement also invites some uncomfortable comparisons at home. Pakistan’s merchandise exports declined by 5.93 per cent to $30.14 billion in FY2025-26, yet again exposing weaknesses of an economy struggling to diversify beyond traditional products. The automotive sector, meanwhile, has considerable untapped potential. Production of two- and three-wheelers rose 31.4 per cent to 1.43 million units during July-March FY26. However, the Pakistan Credit Rating Agency estimates that, of more than 250 domestic automotive parts manufacturers supplying vehicle assemblers, only 28 were exporting. What makes Sazgar’s expansion particularly heartening is that Pakistani enterprise is no longer confined to assembling foreign brands for domestic consumption. It can develop its own identity and establish a foothold in the international market. The government deserves credit for facilitating the venture through its diplomatic mission, and similar efforts should now be directed towards identifying opportunities for engineering goods and agricultural machinery.
There is, nevertheless, a lesson in how Manila is approaching this investment. The Philippine venture is 60 per cent locally owned, and President Marcos has already called for an increasing share of its components to be manufactured domestically. The Filipinos want more than vehicles rolling off an assembly line. They want jobs, technology and an indigenous supply chain. Pakistan would do well to adopt the same determination. The expansion should generate lasting demand for Pakistani components and expertise, even as production overseas becomes increasingly localised. With a reported range of 100 to 210 kilometres on a single charge, Sazgar’s electric three-wheelers fit neatly into Islamabad’s New Energy Vehicles Policy, which aims for new-energy vehicles to account for 30 per cent of all new vehicle sales by 2030. The government should capitalise on this momentum by encouraging domestic battery technology, technical training and component manufacturing, particularly when reducing dependence on imported fuel has become an economic necessity.
What Pakistan needs now is an environment in which ventures of this kind become commonplace. Predictable taxation, affordable energy, accessible financing and internationally recognised quality standards would do considerably more for exporters than another round of ceremonial announcements.
