ISLAMABAD: Prime Minister Shehbaz Sharif on Friday urged the automobile industry to start local manufacturing of vehicles and export a considerable ratio of their products to contribute to national development.
The prime minister, talking to a delegation of automobile and auto parts manufacturers, asked them to implement the Auto Sector Deletion Policy and become a part of the global value chain.
It may be mentioned that the Pakistan Association of Automotive Parts & Accessories Manufacturers (Paapam) recently published an advertisement in national newspapers, drawing the government’s attention to the struggles of the automobile industry.
The association expressed concern that the influx of imported used cars could lead to widespread unemployment in the sector.
In a recent statement, Paapam urged the government to take immediate action to curb the surge in used car imports, which are not only affecting domestic production but also facilitating illegal foreign exchange transactions through unofficial channels.
Chairs meeting to review the progress of Pakistan Single Window Company
In its budget proposals to the Federal Board of Revenue (FBR), the auto sector said that during 2022-23, the industry imported parts amounting to $1.57 billion and all the payments were made through the banking channel.
It added that payments for used car imports are being made through the unofficial ‘grey channel’, which facilitates illegal foreign exchange transactions. Additionally, it said, the influx of cheaper used car imports is causing significant harm to the local automotive industry.
During the meeting, PM Shehbaz told the delegation that the incumbent government was taking measures to boost the country’s exports.
The delegation, consisting of Toyota Pakistan CEO Ali Jamali and Amir Allahwala, a representative of the auto parts industry, apprised the prime minister of the issues facing the auto industry. They appreciated the PM for the government’s pro-business and investment policies.
Single window operations
Presiding over a separate meeting, PM Shehbaz said single window operations should be expanded across the country to ease the provision of civic amenities to the people. Appreciating China’s concept, he said, “China’s single window system was a model for us.”
The meeting discussed the expansion of Pakistan Single Window Company (PSWC) aimed at facilitating trade and commerce in the country.
Published in Dawn, June 1st, 2024
