Import tariff rationalization will eventually make Pakistan a nascent state having no manufacturing and employment generation activity rather the country will have to rely more on imports that will fast deplete forex reserves, a spokesman of Pakistan Automotive Manufacturers’ Association (PAMA) said today while reacting strongly to the devastating recommendations by a foreign Consultancy firm, Gary Persul, to introduce blanket import tariff in Pakistan currently being considered by ECC.
He said that the recommendations of the so-called Australian experts have been suggested that completely ignore the ground realities in Pakistan. Some of the recommendations according to the PAMA spokesman were, to have no checks on imports, drastically lowering import tariffs, no specific duties, no classification between manufacturing and imports and no licenses for imports and exports. PAMA spokesman said that the foreign consultancy company’s recommendations mean that Industrialists should shut down heavy investment incentive establishments and simply import CBUs (Completely Built Units) rather than build CKDs (Complete Knocked Down) locally, this, the spokesman said, is easier than investing billions of rupees in infrastructure development, transfer of technology and management of huge production plants with highly skilled human resource.
Such options would completely destroy the engineering base of the country, he added. They said that existing investment in Pakistan is under great threat and the investors may seek relocations of their plants. The hostile policies of the government will not attract any new investor in the country but would drive away the potential investors, they added. He cited an example of New Zealand when in 2000, on the recommendation of an Australian team, a similar decision was taken which brought the local production at zero level and completely devastated its local Auto industry. He said that instead of facilitating investment in infrastructure and employment generating activities like manufacturing the government seemed bent upon supporting an anti industry lobby thus turning the country into a trading economy rather than becoming a manufacturing economy which ensures the provision of jobs, business, revenue, skill and infrastructural development. The spokesman added that global success stories have proved that only those developing countries have embarked on accelerated growth that mixed western economic principles with local ground realities. The government should look in the region first before embarking on such an expedition and compare Pakistani brand new products with regional countries’ brand new products only. Those misleading the government show comparisons between Pakistan brand new and region’s used products which is not only unfair but unrealistic also.