KARACHI, Nov 25: Local auto parts makers fear collapse of the industry in case the Central Board of Revenue and the commerce ministry allow the import of used auto parts.

As many as 300,000 persons are involved directly and indirectly in hundreds of auto parts making industries, and total investment by vendors and car makers now stands at Rs100 billion.

Pakistan Association of Automotive Parts and Accessories Manufacturers Chairman Razzak Ahmed told Dawn from Lahore that an investment of Rs10-20 billion had already been planned by local car makers and the vendor industry for the expansion of plants to meet

the rising demand for cars and parts.

He said the import of used auto parts would ultimately have an adverse impact on the local production of parts and assemblies.

“Traders are bringing new parts by declaring them old or scrap by putting grease and oil on them. Even gear box, engines and transmissions are being cleared by declaring them old parts.”

Mr Ahmed termed CBR’s estimation baseless and merely an exaggeration that actual illegal imports of used parts stood at $1 billion per annum.

He said 20 years back no parts were produced in the country and now the situation had changed as thousands of components were being made.

He said the association would soon request Commerce Minister Humayun Akhtar Khan to ascertain the reasons behind the change of attitude in ministries. He urged the CBR not to jeopardize the auto parts sector growth by exposing it to substandard imports.