Pakistan Automotive Manufacturers' Association Rejects Blanket Import Tariff

The import tariff rationalization will eventually make Pakistan a state having no manufacturing activity rather importing each and every item, Pakistan Automotive Manufacturers' Association (PAMA) said in a statement on September 20, 2011.

The recommendations of the foreign consultancy firm, Gary Persul, to introduce blanket import tariff in Pakistan would prove devastating for the local industry, the PAMA spokesman said in the statement.

The recommendations of the so-called Australian expert, being considered by ECC, completely ignore the ground realities in Pakistan, PAMA said.

To have no checks on imports, drastically lower import tariffs, no specific duties, no classification between manufacturing and import and no licenses for import and export are few examples from the recommendations which are going to completely wipe out the manufacturing base in the country, PAMA said.

The PAMA spokesman cited the example of New Zealand when in 2000, on the recommendation of an Australian team, similar sort of decision was taken which brought the local production at zero level and completely devastated its local auto industry.

He said that the report by Gary Persul was not shared with local stakeholders and the report was not even placed on the website of the planning commission clearly showing that there is something fishy which the government wants to hide. He said global success stories have proved that only those developing countries have embarked on accelerated growth that mixed western economic principles with local ground realities.