Auto

Pakistan’s Car Industry May Shut Down Permanently: Auto Part Association

The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has sent out a distress call to Federal Finance Minister Ishaq Dar, requesting the urgent removal of the car assembly kits and auto parts imports from the “non-essential items” list.

In a letter to the finance minister, the association stated that auto parts manufacturers save $1.5 billion per year through import substitution and contribute over 5% of the country’s tax revenues.

PAAPAM Chairman Munir Bana informed the minister that the association members, directly and indirectly, employ over 3 million Pakistani workers, technicians, engineers, and management professionals on various projects. He stated that those workers are now facing layoffs as the sector risks closure.

The association requested that all banks open all LCs for imports by authentic part makers and vendors as the industry is facing permanent closure due to rising inflation, currency devaluation, and record-high markup rates.

PAPAAM’s letter to the finance minister reads:

Unless immediate counter measures are taken to save the “mother of all industries”, a massive tragedy would unfold, as the entire auto parts industry would shut down permanently, leading to losses of millions of jobs, rollback of localisation and repatriation of foreign investments by all the automotive assemblers.

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Published by
Waleed Shah