KARACHI: The federal government has sought automobile companies’ data on exports, employment and taxes and duties paid by the sector during the last seven years.

The Engineering Development Board (EDB) has written a letter to the Pakistan Automotive Manufacturers Association, the Pakistan Association of Automotive Parts and Accessories Manufacturers and the Association of Pakistan Motorcycle Assemblers to provide company-wise employment position in the sector.

It has also sought company-wise exports of auto sector (completely built-up units and spares) and sector contribution to the national kitty in the shape of taxes and duties in the last seven years.

The EDB said it is compiling data on employment position in the automotive sector of Pakistan. The purpose is to ascertain and update employment position in the auto sector and utilise the same in policy-making, the EDB added.

The EDB requires company-wise employment position covering permanent, contractual and daily-wagers on priority basis, the letter said.

A bike-assembler, who asked not to be named, expressed surprise over the move, saying the government should have conducted this exercise long ago and repeated the same at regular intervals.

He said the car and bike assemblers always claim to have provided taxes and duties judiciously, but surprisingly the government needs data from taxpayers instead of tax collectors (the Federal Board of Revenue).

Car and bike-assemblers also claim to have provided huge employment directly or indirectly after achieving up to 70 per cent localisation component in cars and light commercial vehicles (LCVs), 90pc in case of bikes and tractors and 45pc in heavy vehicles.

He said the government should also undertake various studies as to why local assemblers lag behind in introducing new models of bikes and cars at par with other countries.

“The auto world has changed a lot and leading Pakistani assemblers stand at the same old position and were rolling out two to three decade-old bikes and cars,” he added.

Pakistani assemblers and auto parts vendors have, so far, not made a mark in exports.

According to Pakistan Bureau of Statistics (PBS), Pakistan’s auto and accessories exports plunged by 18pc to $19.5m in 2014-15 from $24m in 2013-14.

There is no exclusive data available at PBS website regarding export of bikes and cars to various foreign destinations.

Published in Dawn, August 4th, 2015

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