The representatives of Automobile and Auto Parts and Accessories Manufacturers' Associations have expressed their disappointment over last minute cancellation of their scheduled meeting with the Prime Minister's Advisor on Finance Shaukat Tarin today (Friday) to seek a rescue package from the cash starved government for the crisis-ridden industry.
Senior officials of Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) and Pakistan Automobile Manufacturers Association told Business Recorder here Thursday afternoon that a joint delegation of vendors and the auto makers/assemblers had made arrangements to reach Islamabad Friday morning from all over the country to attend the scheduled meetings with the Industry Ministry's Engineering Development Board and the Prime Minister's advisor to discuss measures for saving the automobile industry from virtual collapse.
They said "we were dismayed to receive a message from the Advisor's office that Tarin is busy with some foreign delegations, therefore his meeting with PAAPAM and PAMA delegation on Friday is cancelled". However they stressed "a solution of the country's chronic long and short term financial problems for sustained development lies with Pakistani entrepreneurs and not with foreigners who wanted to bring Pakistan into debts trap."
A source in Engineering Development Board (EDB) told this correspondent that the Board had already submitted a summary on the demands of Auto Industry to ECC through the Ministry of Industries and Production." Auto-makers meeting with the EDB would not be useful as now it is for the government to take necessary action in the light of economic condition of the country", he added.
Talking about the problems of the automobile industry and the proposed revival package Chairman Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Malik Mohammed Aslam said that due to financial crunch, annual automobiles/cars sales have plunged to 75,000 from 2006-07 peak of 1,95,000. "If the 8000 auto parts and accessories manufacturing units in the country do not get sufficient orders from the cars and other automobiles makers/assemblers, then they would be forced to close down and lay off their 2,00,000 skilled and unskilled workers", he emphasised.
Malik said "we demand of the government to withdraw the 5 percent additional excise duty as a depressed and under utilised auto industry cannot provide the required revenues to the government.