Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) have strongly reacted to the story published in media on government’s possible decision of tariff reduction on motorcycle parts including CKD & CBU. Syed Nabeel Hashmi, Chairman commenting on the situation said that Pakistan’s motorcycle industry has progressed in a very impressive fashion over the last half decade based on the AIDP. Adequate competition has been introduced and today well over 60 companies are producing motorcycles in Pakistan.
The recommendations by the Planning Commission to reduce tariffs seems to be an IMF dictate and stuffed with focused agenda to further aggregate the sufferings of the auto business community at large. Mr. Hashmi further said that the Deputy Chairman Planning commission seems to be oblivious from the ground realities and the problems that confront Small and medium manufacturers which form the backbone of the Motorcycle vending industry. The worthy minister probably does not know that business environment in Pakistan at the moment are confronted with hours of electric load shedding, weeks without natural gas and extremely bad law and order situation. This industry inspite of these problems has been the top Employment generator. The very comment that this is a MONOPOLY situation speaks volumes of the intellectual level of the Planning commission. Mr. Hashmi amazed how a major decision can be taken on the livelihoods of thousand of people without taking the stake holders onboard. Over the last two years PAAPAM requested dozens of times from the Dy. Chairman an appointment but he did not find it appropriate to hear us. Mr. Munir K. Bana ,Vice Chairman PAAPAM added that during the period 2001 ~ 2007, with the help of stable policies of the Government of Pakistan, the Automobile Industry went through a period of tremendous expansion, with investment of over Rs. 40 Billion & with volumes going up by over 500%. These developments made the Auto Industry one of the top 5 Industrial Sectors of the country in terms of contribution to tax revenue, acquisition of hi-tech manufacturing technologies and generation of employment. Unfortunately, due to import of used vehicles & other adverse policy factors, our industry is now suffering from excess capacity, leading to halting of investments by local Parts Manufacturers as well as International Automotive Assemblers.
Mr. Bana predicted that the Auto Industry can be one sector that, with proper focus, be part of a quick fix to revive Pakistan’s Industrial sector. PAAPAM strongly oppose any irrational changes in the tariff structures without taking us into confidence. The proposals been floated by these ministries who do not have anything else to do is totally anti industry and without any logic. The PAAPAM managing committee humbly requests the decision makers in the government to grant a hearing to all the stakeholders before taking a final decision.
