Aamir Allawala (Chairman) and Nabeel Hashmi (Vice-Chairman) of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), have expressed their gratitude and appreciation for the Prime Minister Yousuf Raza Gilani and CEO Engineering Development Board Aitazaz A Niazi for reversal in age limit for import of used automobiles from 5 years to 3 years.
In a statement here on Monday PAAPAM leaders said they feel that, by rescinding the decision, the Prime Minister has saved the vendor industry and its 200,000 skilled workers from imminent disaster and massive closures. They said in the year 2005, the government capitulated under the pressure of used cars import lobby and approved liberal imports of used cars. As a result, more than 120,000 used cars were imported over a period of three years. Not only did this decision damage the capacity expansions by the vending industry irreparably, it also led to a situation where the buyers of these used vehicles are still suffering due to breakdowns and non-availability of service / spare parts.
They said that Pakistan is fortunate to enjoy a vibrant auto industry, which is a rarity amongst 3rd world countries. It has presence of more than 1,600 vending units specialising in various technologies including sheet metal, plastics, rubbers, castings, forging, electrical etc employing latest technical know-how and producing parts, as per global quality standards, for world renowned brands of vehicles being produced in the country. Currently, motorcycles and tractors have achieved 90 percent localisation, while passenger cars localisation varies from 55 percent upto 70 percent depending on model by model.
They said several global giants in manufacturing of cars, tractors, motorcycles and heavy vehicles are locally assembling vehicles in Pakistan. These include Suzuki, Toyota, Honda, Hyundai, Massey, Fiat, Hino, Isuzu, Nissan, Daewoo and FAW. Investments by these players is a sign of confidence of these companies in Pakistan market potential and it is the role of the government to further motivate these investors and their vendors through continuation of stable and business friendly policies.
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