KARACHI, Dec 28: As the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) does not favour government's plan to make changes in the deletion levels and revamping of Engineering Development Board (EDB) , the newly formed Association of Manufacturers of Parts for Auto Rickshaw and Motorcycles (AMPAM) comes out to support government's initiative in revamping deletion programme.

AMPAM thinks that in view of current scenario of international economy and especially remarkable growth of Pakistan's economy, the government policies should be amended/changed/ adjusted according to the rapid changes being taking place globally.

AMPAM President Anwar Iqbal in a letter to Federal Minister for Industries and Production Jehangir Khan Tareen, said it was a fact that automobile industry of Pakistan was growing very fast i.e. around 58 per cent in comparison to previous year.

Every car being produced/assembled in Pakistan was being sold on a premium price ranging from Rs40,000 to Rs150,000. Hopefully, this growth momentum shall be maintained in years to come.

Unfortunately, he said, this growth cannot attract new players/investors in this sector because the government has not changed localization/indigenization plans according to present scenario.

He recalled two neighbouring countries India and China had started assembly of assorted vehicles after Pakistan but, they had achieved 95 to 98 per cent localization target. On the other hand, "Pakistani car makers are still importing sheet metal, parts and complete engine in CBU condition from the principal countries."

"Technology has literally not arrived in Pakistan," Mr Anwar said adding this was the right time to revamp all matters related to deletion programmes of the automobile industry. AMPAM, having around 100 members, is also working out different strategies for attracting new investors in this particular segment.

On the other hand, PAAPAM has already cautioned the government to avoid making changes in policies regarding deletion levels and revamping of the EDB with reference to Jehangir Khan Tareen's statement earlier this month that the federal government would soon allow new car makers to start production at 40 per cent deletion levels in order to attract fresh investment in the sector and inject competition in the market.

The government had already allowed two tractor makers to start production at 40 per cent deletion to meet 80 per cent deletion targets in the next five years.