Pakistan Association of Automotive Parts and Accessories Manufacturers Makers Warn Against Import Duty Cut

Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has warned the government against reducing import duty on auto parts, saying it will cause 'irreparable damage' to the local industry.

Irked by the recommendations of the Planning Commission to the Economic Coordination Committee (ECC) seeking cut in duties on imported parts to 10 percent, PAAPAM Chairman Aamir Allawala appealed the planners to reject the proposal.

He termed it a major policy shift on part of the commission without involving the local industry. He lamented the enduring economic slump, high cost of production, shortage of electricity, political uncertainty and devastating law-and-order situation among the issues faced by the local industry.

Allawala said that the automobile industry in Pakistan attracted major investment, not only in assembly of all kinds of vehicles including cars, motorcycles, tractors, trucks and buses, but also in manufacturing of parts required for these vehicles.

"Over 1,600 vendors are supplying parts of international quality to the local car makers," he said. In case of motorcycles and tractors, 90 percent parts are produced locally, while in case of cars, the figure hovers from 55 to 70 percent, he added.

"The prices of locally-produced vehicles are competitive with neighbouring countries," he claimed.