Stable policies a prerequisite to encourage investment in auto industry

Local auto industry is constantly investing in the country amid critical economic turmoil in Pakistan while other industries pulled out, Government should formulate policies that support the industry to create more employment opportunities. This was stated by Indus Motor Company CEO Mr Parvez Ghias, while addressing concluding ceremony at Pakistan Auto Parts Show 2011.
He said that the auto industry is fully documented, pays bills and taxes regularly and doesn’t demand anything from the government apart from stable and long term policies to help develop the engineering base in the country for the sake of localisation.
Mr Ghias said that auto industry is a growth driver in several countries like USA, Japan, Korea, Thailand and now India. In Pakistan too, he said, it provides jobs to millions of local youth, contributes 5 per cent to the national exchequer (Rs98 billion), transfers modern technology; provides means of mobility for goods and people besides enabling other associated industries to run.
In a step to strengthen local auto vendors, he mentioned, IMC alone purchases Rs90 million worth of auto parts every working day which means addition of Rs24 billion to Pakistan’s economy per year and provides employment to over 200,000 local skilled workers at vending industry.
CEO IMC urged the government to focus on polices which encourage more investments in country and create more jobs for increasing population of Pakistan. He said that providing employment opportunities to the masses should be the top priority of the industry and policy makers to ensure equitable growth and social justice.
He said that India has progressed from a closed economy to a deregulated one and its policies have attracted global players to invest in India if they want access to Indian markets which created job opportunities for millions of people. Moreover, India is protecting its local industry by placing non-tariff barriers on imports.
While describing the challenges in the growth of the auto sector, Parvez Ghias said, consistent policy framework should be in place along with good governance as it impacts our currency. Better road infrastructure, cheaper fuels, technology infrastructure and high quality graduates are needed to give a boost to the industry, he added.
He commended Pakistan Automotive Manufacturers Association (PAMA) and Pakistan Association of Automotive Parts Accessories Manufacturers (PAAPAM) for their contributions in bringing the local auto industry to a great height where the industry is helping the people with employment enriching their lives.
CEO IMC especially thanked PAAPAM for providing the opportunity to IMC to be the principal sponsor for PAPS. “IMC hopes the exhibition has served the purpose, in conveying the valuable role that the industry is playing in the industrial growth and development of Pakistan,” he concluded.
He said that the exhibition has given both public and policy makers a chance to closely look at the development made by the engineering sector and that the adverse policies like relaxation in Used Cars Import and recommendations of Gary Pursal etc are impediments to the growth of this sector.
He said the advancement made by this sector were mainly due to consistent policies which enabled the industry to plan, enhance and invest as per the potentials but sudden shift in policies during last few years has not only stopped the industry from planning further enhancement but have actually rolled back many engineering advancements made in last 15 years. PAAPAM Chairman Nabeel Hashmi while speaking to the press on occasion said that IMC has supported the vendors in technological advancement by helping the transfer of technology. IMC also supported and encouraged PAAPAM to hold this event which has given small engineering concerns to showcase their products to a large number of professionals, media and specially the policy makers. The vending industry is committed to produce as much auto parts as possible but their planning and growth is associated with the development of car makers which is not possible without stable policies. The industry does not demand any special treatment, he mentioned, just continuation of policies and understanding the viewpoint of local auto industry will benefit the Pakistani economy resulting in more and more jobs and revenue for the national exchequer.