Auto parts, engineering sectors: SMEDA Sindh chief calls for tapping export potential

KARACHI: Mukesh Provincial Chief, SMEDA has emphasized to tap the export potential in the auto parts and engineering sectors.

Speaking at a collaborative discussion hosted by Mehran Commercial Enterprises to bring together key industry stakeholders and government representatives to develop actionable strategies to revitalize small and medium enterprises (SMEs) in the auto parts industry, which has seen numerous factory closures in recent years due to economic and political instability.

The meeting highlighted the stark contrast between global industry trends moving toward technology and export orientation while Pakistan’s domestic market continues to grapple with fundamental challenges including financing difficulties, outdated infrastructure, and prohibitive operating costs.

Mukesh, Provincial Chief, SMEDA emphasized the organization’s ongoing efforts to support export readiness through seminars, compliance training, and assistance with Export Development Fund registration.

He pointed out the country’s substantial industrial foundation of approximately 5.5 million SMEs and 160,000 financing facilities, noting the significant untapped export potential in the auto parts and engineering sectors.

Naeem, National Project Coordinator for the SMEs Formalization Project at the International Labour Organization (ILO), also stressed the importance of regular knowledge sharing and proposed consistent brainstorming sessions with manufacturers and skilled workers to develop a comprehensive national roadmap for the industry.

Technical Working Group member Mashood Khan highlighted the critical need to establish successful SME auto parts manufacturers as role models, particularly following the devastating impacts of Covid-19 and recent political instability that forced many businesses to close.

The discussion yielded several policy recommendations, including:

• Revisiting import practices to address the disproportionate costs faced by SMEs using Less than Container Load shipping

• Creating a unified government portal for streamlining payment processes

• Integrating labor department fees into monthly utility bills

• Establishing specialized banking facilities for SMEs with low collateral requirements and long-term financing at favorable interest rates

• Urging the State Bank to provide immediate relief to struggling SMEs with existing loans

• Reserving portions of government tenders and large-scale manufacturing contracts exclusively for SMEs.

Industry leaders concluded that strategic policy reforms and robust support systems are essential to rebuilding Pakistan’s auto parts sector into a resilient, globally competitive industry.

Copyright Business Recorder, 2025