Auto industry contributes Rs 110 billion to national exchequer: PAAPAM

With an investment of Rs 370 billion, Pakistan auto industry contributes revenue of Rs 110 billion per annum to the national exchequer while it has achieved import substitution worth US$3.3 billion per annum besides generating foreign exchange of US$210 million per annum through exports.
According to Pakistan Association of Automotive Parts & Accessories Manufacturers (Paapam) Chairman Iftikhar Ahmad, the association has so far registered 319 members since its incorporation in the year 1999 while parts-manufacturing units reached to 770 in tier one, 900 units in tier two and 1400 units in tier three.
Being organized by Paapam, the auto show would continue till March 4 that features more than 200 international and local auto-manufacturers and related enterprises and showcases the vast potential of Pakistan's robust automotive industry. The association's senior vice chairman Ashraf Sheikh said the demand for automobiles is expected to rise continuously over the next three-four years. Therefore, generating investment and increasing capacity building to meet the expected demand is real challenge for the industry, he said.
The base of engineering technologies in the auto industry comprises of sheet metal parts, plastic injection and blow molding, rubber components, steel forging & machining, foundry / castings, aluminum die casting & machining and electrical & electronics, he said and stressed the need for working on multiple fronts to achieve our growth objectives.
The association's former chairman Muhammad Saleem said that auto industry has achieved 75 percent localization in cars, 96 percent in tractors, 96 percent in motorcycles and 80 percent in three wheelers. The auto sector's products are currently being exported to the European countries, USA, African and Asian countries.