Senate panel calls for taking measures to promote industry

Auto industry official says $1.5b investment expected in vehicle manufacturing

ISLAMABAD: The Senate Standing Committee on Industries and Production on Tuesday stressed the need for taking appropriate measures to promote the domestic industrial sector in order to create more job opportunities for skilled and semi-skilled labour force and enhance exports of the country.

The committee, headed by Senator Ahmad Khan, discussed the issues and challenges being faced by the manufacturers of cars, motorcycles and tractors. It also deliberated on the issues which were confronted by the manufacturers of spare parts supplied to the automobile industry.

A representative of the Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) apprised the committee that the association represented over 400 local auto parts manufacturers, which provided job opportunities to more than two million people across the country.

He pointed out that an investment of $1.5 billion was expected in the auto manufacturing sector, adding that the domestic auto parts manufacturers were producing 70% parts of light commercial vehicles and 96% parts of tractors.

He also claimed that the auto parts manufacturing sector was contributing $1.24 billion in revenues annually to the national exchequer.



He complained that the raw material used by the sector was not available in the country and they were compelled to import it, which made the local parts expensive and caused losses to the sector.

He also pointed out that the ban on the purchase of new cars by non-filers of tax returns had slowed down business activities and underlined the need for abolishing the condition of being a tax return filer for the purchase of a new vehicle.

Representatives of the Tractor Manufacturers Association told the committee that they were facing difficulties due to the import of used tractors and sought the imposition of duty on their import to protect the domestic industry.

The Senate committee chairman directed the Ministry of Industries and Production to take measures for the development of the industrial sector in order to enhance exports, and facilitate the production of hi-tech engines for fuel and environment conservation.

He also directed the Federal Board of Revenue to take necessary steps regarding the policy for import of used tractors to protect the domestic industry and create job opportunities for the local workforce.

Published in The Express Tribune, January 23^rd, 2019.

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