The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), the representative body of automotive vending industry, while hailing the report of Planning Commission Deputy Chairman Dr Nadeemul Haq’s resignation, has suggested him to focus on his primary duty of governmental development programmes rather than disturbing the industrial culture of which he is not familiar.
Disgruntled by the IMF-planted Dr Haq’s anti-industry policies, who has vast knowledge but zero experience of industry, Business Forum of Punjab and PAAPAM Chairman Syed Nabeel Hashmi, has said that his policies are more relevant to the place he comes from i.e United States of America. So, the Punjab industry and particularly the auto sector welcome his idea of quitting the Planning Commission and leaving Pakistan, as the country needs not such a technocrat, who least cares for the sick manufacturing economy of Pakistan and who likes to see more presence of outsiders to run the restaurants and chain stores.
Criticizing the amusing and funny ideas of Dr Haq ‘that food outlets bring more employment than industry’, Hashmi said that manufacturing provides employment to more than 10 per cent of the labour force employed in Pakistan; it supports the growth of service sector and generates the taxes of 65 per cent against the share in gross domestic produce of just 20 per cent.
He said that PAAPAM also wants access to cheaper and quality goods for consumers in Pakistan, but its solution does not lie in duties reduction, rather it lies in excessive industrialization and transfer of high technology in the country. Rejecting extraneous and impractical views of Dr Haq, who is a proponent of excessive trade liberalisation through reduction of tariffs, Hashmi said that one cannot forget that the government has failed to provide the required infrastructure to support the growth of manufacturing sector, therefore, the local industry still needs protection. “We work without the support of governments in such atmosphere which is non-predictable; we have switched over from electricity to more expensive power generated by light diesel or by furnace oil; we have to use alternate energy when gas is not available; we have to keep contingencies against being looted on account of being victim of bad law and order situation,” observed Hashmi.
He argued that govt wants to introduce trade liberalization like in Japan, Europe and the USA, but we put a single question. Whether the developed countries have such issues of energy crisis and law and order, our industry is confronting with, he asked the deputy chairman.
He said that the slowdown of economic growth is due to internal weaknesses which are also powered by the mismanagement and imported economic policies. He said that the electricity, gas, infrastructure, inflation, high rate of borrowings, soaring power and gas tariffs and staying away from providing credits to manufacturing by banks due to easy management of sale and purchase of treasury bills together have promised a very bad performance of manufacturing economy. PAAPAM Vice Chairman Munir K. Bana pleaded that if the import tariffs are further reduced, the present growth of industrial economy which has registered less than 2 percent growth during 2010-11 will further decline and also add to the portfolio of nonperforming loans bringing in more industrial units under the category of sick units. He explained that imposition of tariffs or duties at import stage is necessary to provide a cost differential for competing the wrath of under invoiced imports in Pakistan. He 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 seem to be IMF agenda to further aggregate the sufferings of the auto business community at large. He 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.
