PAAPAM members say ‘significant’ import substitution, exports possible in Pakistan

KARACHI: Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) officials believe Pakistan, especially the manufacturing sector, has most of the ingredients required to increase exports as well as doing import substitution to decrease the trade gap.

The association is organising Pakistan Auto Show-2023 in Karachi from October 27-29 with a theme ‘Synergizing Pakistan’, aiming to help synergize the sector and also to bring different sectors together in an effort to do import substitution as well as promote exports.

Over 150 companies, including multiple Chinese firms and Iranian automotive parts manufacturers are set to participate in the auto show, according to the association.

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“The show is themed around ‘Synergizing Pakistan’ and the aim of the show is to highlight the hidden assets of the country in terms of value addition and manufacturing,” said Zain Shariq, convener of PAAPAM, the organiser of the show.

He said there would also be a symposium about “Synergizing Pakistan” featuring prominent members of the academia and industry as panelists and presenters on October 28.

“The aim of the symposium is for academics and intellectuals in the country to share their views on challenges and pathways for the manufacturing talent of the country to better position itself in the local and international markets,” Shariq added.

He shared that PAAPAM believes the automotive vendor sector is the “strongest and most globally competitive manufacturing base in Pakistan, spanning every technology and material”.

“Our members are already exporting engineering goods manufactured locally to the tune of $200 million across 57 countries catering to various segments such as aftermarket auto parts, safety equipment, packaging, medical goods, engineered products and subcomponents.

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“Based on the 21-22 industry data PAAPAM facilitates an import substitution saving of $4 billion annually. The nation produced approximately $8 billion worth of vehicles across all segments against an import of only $4 billion,” he said.

PAAPAM official said the local auto parts manufacturing industry with 500,000 direct and 2.4 million indirect employment is “among top five tax-paying industries as its annual contribution is Rs16 billion to the national exchequer while its contribution to foreign exchange is around $15 million”.

This year, the auto show will have participation from various associations across the country, such as APTMA and PASPEDA for the first time to encourage interaction between the different sectors of the economy, according to PAAPAM.

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Also, many Chinese firms and Iranian auto parts manufacturers are marking their debut in the exhibition while some eminent participants, which will showcase their innovations in the exhibition include Honda, SITECH, Crown Group, HACPL, and Ayesha Steel. 

Besides, numerous governmental and trade entities such as Engineering Development Board, Ministry of Commerce, SMEDA, PASPIDA, GDA, TMA, PAK Wheel, Trade Key, GDA, Auto Mark, Industrial Magazine, and Time’s Trade Directory have pledged active support and engagement in this significant endeavor.