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Auto parts industry seeks govt help against negative tactics

KARACHI: The auto spare parts industry, which operates 95 percent on the self-help basis with over Rs 20 billion local investment, has urged the government to give it support and cover against what it termed as "the negative tactics at home and outside to harm the industry".

To introduce their products and highlight the contribution made by the industry towards nation-building, over 105 firms throughout the country have joined the 5-day Pakistan Auto Parts Show (PAPS-2000), organised here by Export Promotion Bureau (EPB).

Younas Industries Agri (Pvt) Ltd's owner and a member of the managing committee of the industrial show, Sheikh Mohammad Ashraf, talking to APP here on Wednesday, urged that the industry be exempted from tariff on raw material otherwise it would be difficult for them to compete with foreign products in cost and quality.

"Tariff on raw material is 25 percent while on the components it is not more than 15 percent", Sheikh said adding, thus it is a big blow to the home spare parts manufacturing industry.

He also called upon the government to resist the World Trade Organisation's (WTO) move for "free deletion" which he maintained means "no-monitoring" over the imports of spare parts and components.

"WTO through hostile tactics like free deletion policy will wash away our home auto spare parts industry", he remarked.

Besides, he said the dealers in second hand auto spare parts had become another challenge he said and called for a strict check over this trade to save the local industry.

Sheikh Ashraf suggested the tariff should be the manufacturers' welfare-oriented instead of the traders.

He maintained that auto spare parts manufacturing industry was paying more taxes than any other industry in the country.

Besides, the industry has been helping to check unemployment and presently it has over 100,000 workers on its payroll, he added.

He said they were the original equipment manufacturers (OEM) and were meant to supply their products for assembling purpose to the local industry instead of selling in the markets.

Besides, the United States, Germany, England, France, Italy, Turkey, Middle East and above all the Saarc states were the importers of these auto spare parts. The sale to the Saarc countries was rapidly increasing, he pointed out.

The spare parts being exported include engine parts, body parts, hand brakes and fly-wheels.

Shariq Sohail member PAPS-2000 managing committee, urged consistency in the government's industrial and commercial policies.

The policies should be based on national goals and the government should take responsibility for their implementation.

Sohail also stressed the need for maximum participation of the private sector as the public sector alone could not meet the national demands.ÑAPP