Federal government will discuss auto policy with different stakeholders to make it vibrant and in line with domestic needs. The upcoming Pakistan Auto Show 2011, which is going to start from October 24 at the Expo Centre in Lahore, will prove to be a milestone for growing auto industry.
These remarks were made by the prime minister’s advisor on industries Muhammad Basharat Raja. He was addressing participants of a seminar titled “Problems, Issues and Solutions of the Auto Industry” here on the other day.
Basharat said that the auto show would definitely leave a positive impact on the auto industry, which had witnessed noticeable growth during recent years. He expressed good wishes for organisers, especially for Pakistan Association of Automotive Parts Accessories Manufacturers (PAAPAM) Charman Syed Nabeel Hashmi for organising such a mega event.
Addressing the seminar, PAAPAM chief highlighted that international and local manufacturers and auto part makers of cars, motorcycles and tractors would take part and exhibit their products in the Pakistan Auto Show 2011 that would be held at the Expo Centre in Lahore from October 24 to October 26.
“All the world is our market,” he said this is our slogan this year, and “we want to inform this (slogan) to our manufacturers through Pakistan Auto Show.” He said, “We will go ahead this year through this slogan.” Pakistan has extensive scope to expand engineering and auto industry, he said, adding, the country will have more chances of enhancing (auto industry) exports in this way.
Talking about current and immediate concerns include Trade with India and Non implementation of the AIDP vendor part regimes, the Chairman PAAPAM Sayed Nabeel Hashami said, “We feel that with better and more managed policies along with long term vision the prospects for rapid growth in the auto industry are extremely bright. Countries with comparable population, such as Brazil, are producing over 3.5 million passenger cars every year. Similarly, Indonesia which has a population of 240 million people produced 8.2 million Motorcycles this year. It may take a while, but Pakistan must target similar volumes over the next 10 years,” he said.
Sayed Nabeel Hisami, said Pakistan is also one of the most competitive global manufacturers of Tractors and 2-Wheelers that have ventured out into overseas exports. Even in case of passenger cars, our products are highly competitive in comparison with regional neighbours being exported to Sri Lanka and African countries. At this point in time one of our worst effected industry is the tractor sector which has come to a grinding halt for the last 4 months due to imposition of 16 per cent GST. The industry produced over 80,000 tractors last year out of which approximately 10,000 were exported. The level of localisation in the tractor sector now exceeds 95 per cent and this sector alone yielded well over Rs5 billion to the national exchequer, he explained.
“We are strongly demanding review of the 16 per cent GST decision. We feel as a first phase the GST must be withdrawn to immediately restore the order bookings and manufacturing. Credit financing from Zarai Taraqiyati Bank has to commence again and the Government must re-introduce Green Tractor subsidy schemes to boost sales. All these recommendations are to be implemented immediately. We are however glad the Ministry of Industries has taken note of the situation and are proceeding with our case to the ECC.”
Lahore Chamber of Commerce and Industry Former President Mian Anjum Nisar said that industrialists and businessmen are playing their proactive role despite the fact that Pakistan is facing its worst-ever energy crisis. He also said that the auto industry has proved through the manufacturing of cars, motorcycles and tractors in the country that it has the capacity to not only to provide jobs but also has an important role in attracting foreign exchange.
Technical and Vocational Training Institute Chairman Saeed Ahmad Alvi said that the Punjab government is providing technical education to local masses so that technically-sound manpower can be provided to local industry. He said that technical manpower can prove effective for the engineering and auto industry. Khalil Sindhu Parliamentary sectary in Punjab government said that the provincial administration will provide all facilities to the Auto Show. UET Mechanical Engineering Department Dean Dr Saleem Abid appreciated Pakistan Auto Show, and said that the engineers will get introduced to new technologies through this mammoth event.