MABAD (APP) The policies and the positive interventions of the Government in the market are to support industry to harness new investments, employment opportunities and technology transfer to Pakistani manufacturers.
This was stated by Aziz Ahmad Bilour, Federal Secretary Ministry of Industries, while holding separate meetings with the representatives of the PAMA (Pakistan Automotive Manufacturers Association) and PAPAAM (Pakistan Auto Parts Manufacturers Association) on the issues of new entrant policy and tariff rationalization here on Monday.
Mr. Bilour assured the participants of the meeting that the Government will take all stake holders on board before the issuance of any policy and will not take any step at the cost of the industry itself. He said that the automobiles industry has shown remarkable growth over the past few years and there is still huge potential in this industry.
Talking about the investment prospects in this sector, he said that Pakistan has a very low car to population ratio which currently stands at 12 cars per 1000 persons which is 200 cars/1000 persons in Malaysia and 120 cars/1000 persons in the whole world.
This suggests that Pakistan can exploit the latent potential in this sector and generate huge employments for the burgeoning youth of the country on the one hand and expanding our industrial base on the other by shifting to the engineering products which is the panacea to the problems our industrial sector is currently confronted with.
The representatives of PAMA and PAPAAM supported the Governments decision to bring new foreign investors in the market but asked the Government to take care of genuine demands of the auto industry.
They asked the Government to offer the new entrant gradual increase in tariffs rather than zero tariff on import of auto parts, make them bound to gradually localize their product and bring it to the existing level of localization in the country as early as possible.
They were of the view that Pakistan should follow the example of other countries in the region which, despite being in the WTO regime, have imposed huge duties on the imports of automobiles to safeguard the interests of their local industry.
They observed that new investors will rush to Pakistan once the local market starts showing signs of resurgence.