The local auto industry is suffocating due to severe foreign exchange shortages and parts supply issues.
On Thursday, Pakistan Automotive Manufacturers Association (PAMA) and Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) sent a joint letter to the State Bank of Pakistan (SBP) Governor Jameel Ahmed.
The letter stated that the industry is on the brink of extinction due to SBP’s restrictions and banks’ lack of cooperation in auto sector imports. As a result, factories are facing intermittent closures while assemblers and vendors are laying off workers.
The letter warned that, if corrective measures are not taken, this scenario will result in massive unemployment, government revenue loss, auto assembly plant closures, and capital flight. It added that the industrial breakdown was caused by direct and indirect influences on the issuance of the letter of credit (LC).
According to the Pakistan Bureau of Statistics (PBS), car assembly kit imports fell 38% to $499 million in H1 FY2022-23, from $808 million in the same period last fiscal year. This has created an inventory shortage and massive sales and profit decline for automakers.
Citing these facts, both associations urged the SBP governor to abolish the import restrictions to ensure the auto sector’s survival.
You factory owners are the biggest deceivers who said that after few years of plant starts work you owners will make cars inside Pakistan, but till date you owners have not made any 100 percent cars in Pakistan, you owners have been ordering all the parts of cars from outside. your factory should be closed and the owners should be jailed.
100% agree. Came to comment the same. Unfortunately every bully in Pakistan goes unpunished. This is the sign of a banana state.
logo ko 40 saal luttey rahe hn aur khud chand months bhe bardasht nhe kr sake. bardasht jya krna gmhn prices barha ke sara malba pher bhe awam oe h para h.
Plant owners,their executives and political persons involved either by as share holders or by any other relationship should be burned in these factories ,their properties be disposed to pay off IMF loans and PPP pmln parmentarians should be treated similarly.They have looted pakistan.they got loans FROM IMF TO pocket them abroad. They got kick backs and made properties abroad.Shame for these looters and hel for these worst parliamentarians.
Considering their performance they should have been shut down long time ago
Looters and thieves