Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has strongly condemned the formation of sub-committee led by the Ministry of Industries to recommend proposals for reducing tariff on auto at the behest of the Chairman Planning Commission.
The recommendations being forwarded by irrelevant quarters are sheer deviation from the objectives of Auto Industry Development Programme (AIDP) which ensure sustainability of local manufacturing further indigenization and integration into global supply chain.
These views were expressed by Syed Nabeel Hashmi, Vice Chairman PAAPMA in a meeting of managing committee to discuss the issue. He once again warned of severe reaction from auto industry against any move for reduction of tariffs in the name of rationalisation, which have already been well defined in the AIDP programme.
Hashmi further said that proposals from irrelevant areas on contentious issue of draw-down of tariffs, who do not understand the dynamics of the engineering industry does nothing but further hurts a stagnant manufacturing sector and cause a major revenue dent to cash starved economy. Time and again, PAAPAM has stressed the need to allow industry grow in a planned manner.
Hashmi lamented that the recent moves by the Planning Commission to implement a report that has been prepared at the Planning Commission office lacks proper projection without inputs of stockholders is a highly irresponsible act. The auto industry is yet to recover from the last two years of global recession and recent law and order situation in Karachi. The Planning Commission's actions seem to be becoming a part and parcel to disturb a well documented and highly taxpaying sector.
Rejecting the move for curtailment in duty structure, Hashmi said that recommendations contained in the report would do an irreparable damage to the vending industry increase unemployment/poverty, increase trade deficit and erode foreign exchange reserves.