Government urged to patronise engineering and auto parts industry

The Pakistan Auto Parts Exporters Association Chairman Tahir Javed Malik has urged the government to fully patronise engineering and auto parts industry as room still existed for improving the performance of that sector.
He said the auto parts sector had attracted new investment, which created more job opportunities while it could also help meet the increasing gap between the imports and exports of the country.
Talking to Business Recorder here on Friday, Tahir Javed Malik also welcomed the government decision to convert Export Promotion Bureau (EPB) into Trade Development Authority (TDA). He was of the view that it should not be a cosmetic change only rather whole working pattern of this authority should be changed in consultation with the Chambers and other bodies. He called for inclusion of people from private sector to the authority for making it more active and effective.
He said that rising trade deficit had also become a challenge for the national economy and government should consult private sector while formulating industrial and trade policies, as it could ensure reduction in the imports and swift increase in exports.
Quoting some economists, he said the trade deficit would cross dollars 10 billion by end of current financial year. Such a rapidly increasing trade deficit would also nullify the impact of foreign remittances and foreign exchange reserves, he claimed.
He asked the government to review the import list and exclude all those items, which were not important for the industrial sector. He also called for allowing import of cars on large-scale, as it would also encourage the local engineering industry.
He said the government claim that increase in petroleum prices and import of textile machinery for modernisation were two factors behind increasing trade deficit could not be refuted.
Tahir Javed Malik also called for giving incentives to the agricultural sector as in the absence of incentive Pakistan was fast becoming food items consumer country. He regretted that despite being an agrarian economy we were importing wheat, garlic, onion and other items from our neighbouring countries.
He said the country was facing a crisis like situation in sugar at present and we were forced to import sugar from India. The sugar crisis could be averted if due price was given to the cane growers. If a sugar policy was devised in consultation with all stakeholders, Pakistan could have exported sugar instead of importing it, he added. Tahir Javed Malik also called for provision of electricity to industrial sector on cheaper rates to decrease their input cost and making them competitive in the international market. He also called for reduction in the export refinance rate.