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'Auto-parts exportsmay double from$8m to $16m'RECORDER REPORT

KARACHI: The Chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), Mohammad Saleem said that the exports of auto-parts by the local vendors was likely to be doubled from $8 million in 1998-99 to $16 million by the end of 1999-2000.

PAAPAM's chairman while speaking at a media get-together held at the site of the grand Pakistan Auto Show 2000 on Thursday, urged the government to provide more incentives to the auto-parts industry as it had great potential to earn foreign exchange.

He, however, regretted that so far the industry had been badly neglected by the government for past many years. If the government gave us a level playing field, the local vendors could help government's plan of boosting the exports.

While expressing his concern over higher incidence of duties which vary from 30 to 40 percent on various heads on the raw materials of auto-parts, he said the rate of duty be fixed from one percent to five percent for five years. With the reduction in duty on the raw material of auto-parts, the industry would flourish by leaps and bounds. He also demanded of the government to fix the Import Tariff Price (ITP) on auto-parts.

Saleem categorically stated that Original Equipment Manufacturers (OEMs) were not interested in setting up plants in the country owing to declining trend in the sales of various vehicles. In this context, he said that in 1990, around 50,000 vehicles were sold whereas less than 50,000 sale of vehicles was expected by the end of 2000 which clearly indicated shrinkage in the sale of vehicles.

About the deletion, Saleem pointed that Suzuki Motor Company hardly could have attained the deletion of 68 percent in the manufacturing of 800 cc cars as against the set target of deletion of about 77 percent.

He said there were 25 vendors when the association came into being in 1992 adding that now their number had increased to 200. Out of 200 registered vendors, 25 have entered in the export of auto-parts.

The grand Pakistan Auto Show (PAPS) 2000 is being jointly organised by the Export Promotion Bureau (EPB) and the Pakistan Association of Automotive Parts and Accessories Manufacturers.

The show inaugurated on January 18 will continue till January 22,2000.�
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