Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) has demanded of the government to declare the auto industry as a "key industry" that provides livelihood to over five percent of the country's population, saves valuable foreign exchange and contributes almost three percent of gross domestic product (GDP).
Paapam Chairman Munir Bana in a statement on Saturday said the auto industry was comprised assemblers of various vehicles including cars, motorcycles, tractors, buses and trucks while auto parts manufacturers (APMs), produce the entire spectrum of engineering technologies necessary for assembling an automobile. He said that a majority of the auto parts manufacturers was small and medium enterprises, and this category unfortunately had no access to traditional bank credit.
He said the auto industry was considered the mother of all industries and governments around the world bent backwards to ensure that the auto industry survive all major setbacks, whether those were local or international slowdowns. In Pakistan, this is the only industry which has continued to invest in new technologies and raise production capacities, in spite of adverse policies like import of used vehicles, non-implementation of past Auto Industry Development Plan, lack of export incentives, non-availability of credit and absence of utility services.
He said the government might create the right environment for encouraging new entrants to set up assembly plants in the country, thereby fostering healthy competition, further localisation and industrial growth. This is a better option as compared to the current trend of supporting import of used vehicles at the cost of local employment, foreign exchange losses and revenue generation.
Paapam Chairman said that imports of used vehicle had been eating into the market shares of local auto industry for the last two years, creating idle capacities and badly hurting the auto parts manufacturing industries. Fortunately, used cars were curbed last December by reduction in the allowable age limit for imported used cars to three years; however, import of used vans, SUVs and heavy commercial vehicles continue unabated which must also be restricted to three year immediately. This illegal practice of misuse of foreign workers' personal entitlements by the used car dealers must be stopped to save the auto parts manufacturing industries from total closure.
Comments
Comments are closed.