Auto parts makers demand halt to imports

Say country can save billions of dollars by controlling under-invoicing, smuggling

LAHORE:

Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Chairman Abdur Razaq Gauhar, while welcoming the government’s decision to impose ban on import of luxury cars and consumer goods, has called for halting import of auto parts too.

“Banning the import of those products which are being made locally can aid in averting the threat of default,” he said.

In a statement, the Paapam chairman said that Pakistan could easily save billions of dollars by controlling under-invoicing and smuggling of tyres and parts of motorcycles, cars and tractors.

“Amidst a grave uncertainty and severe pressure on the foreign exchange reserves, the government will have to expand this move of national importance by including the locally made auto parts in the negative list,” he emphasised.

Gauhar pointed out that the import bill of auto parts was as high as that for completely built units (CBUs) and completely knocked down units (CKDs), which was not only dangerous for the auto industry but was also eroding the foreign exchange reserves.

“Pakistan spent over $8 billion on the import of edible items in the last fiscal year, which needs to be tackled by promoting farm mechanisation with the support of auto industry.”

Published in The Express Tribune, May 22^nd, 2022.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.