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Published 30 Jul, 2011 08:14pm

Smuggling hurting auto parts makers

LAHORE, July 30: The rapid increase in the availability of auto parts and accessories smuggled under the Afghan Transit Trade (ATT) is severely affecting the business of local manufacturers of spare parts besides causing losses of billions of rupees to national exchequer.

Over Rs170 billion worth of goods are smuggled through ATT causing loss of Rs21.5 billion to the national economy, according to Federal Board Revenue (FBR) estimates.

“Pakistani markets are flooded with the goods smuggled through Iran and Afghanistan,” an auto part manufacturer told Dawn. “Smuggling of auto spare parts is being done mainly through ATT.

Over 200 truckloads of smuggled goods come daily unhindered from Afghanistan. Hundreds of consignments of spare parts arrive in Peshawar from Afghanistan every day, which are taken to major cities,” he said.

He said the smuggled items are sold at 50-60 per cent discount compared to the parts being produced locally or being imported. He urged the government to check smuggling under ATT to protect the local auto vendors and jobs.

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