The government should announce the facility of research and development for auto parts sector as it has given to the textile sector if it wants to see desired increase in export volume.
These views were expressed by the Chairman Pakistan Association of Auto Parts Exporters (PAOAPE) Tahir Javed Malik in a press release issued on here on Monday.
He said that the 1.5 percent decrease in mark-up on export refinance by the Governor State Bank of Pakistan is a step in right direction but there is a need to further curtail the mark-up rate to make Pakistani goods competitive in the global market.
Javed Malik said that despite an increase of 33 percent in the salaries of industrial workers the business scenario has yet to witness the activity because of high cost of raw materials and utilities in Pakistan.
The Chairman said that Pakistani exports had been heavily depending on textile sector and despite an investment of over 5 billion dollars in the last few years the sector is facing crisis like situation for which government has given a package of Rs 25 billion.
According to him, this is the high time that the auto parts sector should be given some suitable package of incentives to increase its exports. If this important sector is given incentives it would help the government achieve export targets being set in the new Trade Policy.-PR