Local auto part manufacturers have refreshed their demand for incentives in government’s Auto Industry Development Policy (AIDP) 2016-21.
The auto part vendors, while speaking to a group of journalists, stated that they contribute over 60% of auto parts to locally manufactured cars and have a massive impact on the economy as they save the outflow of millions of dollars and also help slow down the depreciation of Rupee.
The local vendors complained that despite their contribution, the government has ignored them completely in the new policy.
According to them, currently, 400 vendors from across the country deliver auto parts worth more than Rs. 300 million every day.
“This has not been possible without the transfer of technology from Japan; the domestic vendors have 45 different technical assistance agreements with Japanese companies.”
The vendors were of the opinion that the government should provide tax amnesties and other incentives to encourage ‘made in Pakistan’ approach.
They demanded that the government should also provide perks to the local auto parts manufacturers’ equal to the new players, but it had not been considered in the new policy.
CEO of Ahmed Glass Industries, Ejaz Ahmed said that with the help of modern technology, the parts produced locally complied with international standards and were approved by Japanese headquarters of the domestic car manufacturing companies after thorough quality tests.