Paapam opposes reduction in auto-parts duties

Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) and its members have strongly opposed any reduction in auto-parts duties. It is reported that Planning Commission is presenting its recommendations to the Economic Co-ordination Committee (ECC) for drastic reduction in the rates of duties to 10 percent on import of automotive parts.
In a statement here on Thursday, Paapam Chairman Aamir Allawala, expressed his disappointment and dismay, that a major policy shift is being actively marketed by the Planning Commission without even sharing it with the local industry. Aamir said that the Automobile Industry in Pakistan is a unique example when compared with other developing countries.
The industry has attracted major investment, not only in assembly of all kinds of vehicles including cars, motorcycles, tractors, trucks & buses, but also in manufacturing of parts required for these vehicles within the country. Currently, more than 1,600 vendors are producing parts of global quality standard for OEMs operating in Pakistan.
In case of motorcycles and tractors, 90 percent parts are being locally produced, while in case of passenger cars, the figure is from 55 percent to 70 percent. Leaving aside the false propaganda made by the used car lobby, the prices of vehicles made in Pakistan are competitive when compared with neighbouring countries. In fact, the industry is producing the cheapest motorcycles in the region and the cheapest tractors in the world.