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Tussle Between PAAPAM & PAMA Increases on Localization of Parts

The fight between the two leading bodies of the auto sector – Pakistan Automotive Manufacturers Association (PAMA) and Pakistan Association of Auto Parts and Accessories Manufacturers (PAAPAM) – has increased when it comes to the impact of Statuary Regulatory Orders (SROs).

The tussle began when PAAPAM Chairman sent a letter to the Engineering Development Board (EDB) and leveled accusations on the carmakers. EDB, the regulatory body of the sector brought both sides to the table in a bid to resolve this.

Director General, PAMA stated that they were shocked at the contents of the letter by PAAPAM that said that he had talked about integrating three notifications and sought access to OEMs’ data as well that of EDB.

PAAPAM Chairman had said that the SRO implementation was faulty and they lacked transparency along with low duty on items that harms their localization efforts. He added that the devaluation of the rupee wasn’t a good excuse for the increase in car prices.

PAMA’s Director General said, “We find the account of Chairman PAAPAM is filled with confusion and contradiction and it is essential for the government/EDB to handle it. However, it would have been better if it was taken up at the AIDC level, which has much larger representation and more suited forum than discussing the same at a subject-specific sub-committee.”

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