LAHORE: Pakistan Association of Automotive Parts Accessories Manufacturers (PAAPAM), with its main objective of bringing self-reliance and competitiveness in country's auto sector is looking forward to a pro-industry budget which should give support to counter the various issues faced by the SME units including energy crisis and law and order.
Addressing the PAAPAM managing committee, the Association Chairman Syed Nabeel Hashmi here Tuesday stressed the need for promoting large scale automotive industries, which have adequate capacity to fulfil local as well as export demands.
He said that the government should to focus on upgrading electricity distribution management, devolve DISCOs to provincial levels and invest in energy solutions in the upcoming budget to achieve key economic targets. He demanded of the government to allocate maximum funds in the upcoming budget, for the construction of dams, tapping Thar coal potential, completion of Iran-Pakistan gas pipeline and establishment of LNG (Liquified Natural Gas) terminals and power projects.
He said the government should share its energy plan with the industrial bodies, as the high electricity tariff and its outages have crippled the industry and the SMEs. The unemployment, price-hike, industrial closure always give birth to lawlessness and anarchy, therefore, the government should reset its priorities.
He said that TDAP (Trade Development Authorty Pakistan) funding lines must be enhanced so that it can participate more professionally in international trade fairs, besides trimming its own structure and making it more professional. He proposed the government to strengthen EDB to develop Pakistan's engineering sector especially the SMEs.
Regarding trade with India, he appreciated the ministry of commerce for taking necessary steps to ensure that adequate space exists for auto sector prior to full opening of auto trade with India.
He said that they, however, have a lot of work to do especially within the Pakistan Standard Quality Control Authority (PSQCA), whom they feel, is currently clueless of the role it is required to play for development of Pakistan's industrial base especailly with a focus on trade with India.
"We are also expecting that necessary steps shall also be taken to discourage import of used cars which is eating away employment in Pakistan," he added.
The PAAPAM Chairman said the Association has concluded its series of meetings with the various government organizations on the annual budget and appreciated Deputy Chairman Planning commission for understanding their position on tariffs and his comments to support R&D and a competitive based industrial culture in Pakistan.
He welcomed the issuance of amnesty SRO for sales tax defaulters by the Federal Board of Revenue, but this is not a complete solution to the problem, citing, it is essential that a complete package including installment plans for principal amount repayment and penalty surcharge waivers be also announced.
PAAPAM Vice Chairman Munir K. Bana observed that by implementing Auto Industry Development Programme, the PAAPAM wants to enhance exports of auto parts, besides increasing financial support for BMR of the automotive SME sector.
He urged the government to reduce costs of imported inputs for auto component manufacturing and sought reduction in Sales Tax rate from 16 percent to 12 percent, besides proposing cut in Income Tax rate from 35 percent to 20 percent.
He also dispelled the perception that local industry is manufacturing substandard products. "We are making products as per design specification and quality as required by our customers," he added. He said that PAAPAM is seeking for technical collaborations with international companies for high tech auto parts manufacturing in Pakistan.
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