PAPS to hunt new markets for local auto parts

Pakistan’s auto engineering sector, despite of being stuck in the turmoil due to ever increasing inflation and adverse import policies, has showed tremendous improvement during the past decade as it has achieved on average 60 per cent localisation while generating employment for thousands of people and bringing latest technology in Pakistan. According to industry sources, Indus Motor Company (IMC) has taken a commendable initiative by supporting Pakistan Association of Automotive Parts Accessories Manufacturer (PAAPAM), for organising ‘Pakistan Auto Parts Show (PAPS) 2011’ on 24th October in Lahore to showcase the development and advancement in auto part manufacturing industry and seeking new export opportunities. PAAPAM is playing an important role in economic development of automobile and related industries in Pakistan, to display their efforts in developing innovative engineering base for Pakistan. Indus Motor Company, being the platinum sponsor of PAPS 2011, has given a practical shape to the dream of bringing all vendors to a common platform to showcase their localisation and hunt for the new markets. PAPS 2011 will provide a unique platform to these vendors where along with OEMs they will demonstrate their products and attract potential buyers. Almost 130 companies will be participating in this exhibition, including three large OEMs. “OEMs have played a major role in raising localisation of auto industry to take it to a level as it is today. IMC alone has developed sixty vendors for local parts across Pakistan and has arranged 34 technical assistance agreements for transfer of technology, showing its commitment to localisation,” sources added. The government should formulate policies, supporting local companies, both OEMs and vendors, so that the country gets most benefit from the production of these auto parts. If it will continue to allow imports of completely built units or used cars, it will only support the business of foreign economies resulting into millions of job losses in the auto manufacturing and allied industries of Pakistan. In addition they said, the government’s AIDP of 2007 to support Pakistani auto industry was not sincerely implemented by the officials resulting into impediment to the growth of this sector. Most of the local companies have been closed or they have diversified their business to some other related products.