Parts producers stress higher localisation

LAHORE:

Producers of automobile parts have appreciated Prime Minister Imran Khan for taking notice of soaring car prices in the country.

In a meeting held on Saturday, officials from the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) said automobile prices were high mainly due to lower content of localised parts and government’s strict tariff and taxation policy which affected car prices in the country.

During the meeting, senior members of PAAPAM endorsed the federal cabinet’s decision to launch inquiry in this regard citing that vehicle rates can only be reduced by complete implementation of localisation regime.

The imposition of regulatory duty, additional customs duty, devaluation of rupee and higher federal excise duty became a major burden for the consumers of automobiles, they added.

Since the existing automobile policy is set to expire by mid-2021, it will give the perfect opportunity to the government transform the stagnant system and to bring transparency and credibility to the procedures of automobile sector, they said.

Participants of the meeting appreciated Prime Minister Imran Khan for highlighting the issue because the country was being exploited as a consumer country instead of a manufacturing country.

“We need ‘Make in Pakistan’ not ‘Assemble in Pakistan’,” they stressed.

Published in The Express Tribune, January 3^rd, 2021.

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