Pakistan Automotive Manufacturers Association (PAMA) urged Economic Coordination Committee (ECC) to take industry’s point of view into consideration before taking any decision with regards to proposed changes in CBU import rates or extra concessions to new entrants.
In a letter to Minister of Finance and ECC Chairman Dr Hafeez Shaikh, PAMA Director General Abdul Waheed Khan said the different stakeholders of the automobile industry including motorcycle manufacturers and vendors should not be ignored for setting up any future strategy for the industry. He said that it was quite unfortunate that despite binding orders from the Finance Minister the concerned committee has not so far invited representatives of the PAMA in the committee constituted by ECC.
DG said Pakistan’s local motorcycle has flourished and qualified to be an integral part of the economy with thousands of skilled workers and laborers but their representatives have not been taken on board so far.
ECC should involve the stakeholders of the billion dollar industry to move further towards the consistent development instead of unilateral decision that will lead to nowhere but destruction of the industry.
Pakistan is among the top 20 motorcycle manufacturing countries in the world producing quality two wheelers of international standards ranging between 70cc to 150cc based on modern technology.
Local automobile industry’s total installed capacity (2011-12) was 2,500,000 while the sales volume in 2011-12 was 1,600,000. The capacity utilization in 2011-12 was 64 percent. The two wheeler penetration in Pakistan is 12/1000 persons.
DG pointed out that the government recent policy shift to offer hefty duty concessions on import of CBU is a great concern for local industry. Any move in this regard will completely destroy the entire existing local industry, he added.
The government should make all its efforts to attract foreign investment but it should not ignore the fundamental concept of a level playing field for all existing and new players, he said and added PAMA is not against any foreign investment but without endangering the existing industry, it requests the government not to offer any duty concession to a single player.
