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Auto parts makers seek incentives

RECORDER REPORT

LAHORE: Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) has urged the government to give incentives to the indigenous industry to enhance country's exports from $ 12 million to $100 million.

Addressing a press conference here on Thursday, President Muhammad Saleem and Nabil Hashmi, Member, Executive Committee, of the Paapam, urged the government to revise the 'deletion programme'.

They said that currently there was no restriction on setting up assembling plants in the country and anybody could instal such plants, even by importing 100 percent autoparts, which had badly damaged the indigenous industry.

They said that commercial import of auto parts was allowed at 35 percent import duty, which was required to be enhanced, besides imposition of 15 percent regulatory duty because WTO has a provision, allowing regulatory duty up to 20 percent, to protect the indigenous industry.

He said that Federal Commerce Minister Razaq Dawood has assured the Paapam delegation which called on him in Islamabad on February 28, that the import of complete built unit (CBU) would be banned.

Nabil Hasmi said that currently there are 2,000 companies, manufacturing autoparts. He said that total investment of the vending sector was Rs 45-50 billion, as compared to assembling sector's, which is not more than Rs 10 billion.

He said that the irrational policies of the government were not only damaging for the local manufacturers, but also affecting the government revenues.