Pama plans to resist anti-industrial policies

LAHORE - Pakistan Automotive Manufacturers Association (PAMA) is chalking out a plan of action to resist the anti-industrial policies, including allowing commercial import of old vehicles and lowering of import duties on advice of a foreign consultant likely to be enforced by the government against the local industry. According to the sources, the PAMA members are finalizing a plan of action to save domestic industries as the government has constantly been ignoring the worries and pleas of local manufacturers and implementing hostile policies. The sources informed that PAMA members are likely to approach Ministry of Industries & Production (MoI&P) and hold separate meetings with the President and the Prime Minster of Pakistan to highlight the issues and request for implementation of favorable policies promoting the locally-made products. They said that the PAMA members, local manufactures and parts manufacturers had raised their voices alike against the import of 5-year-old used vehicles and provided the government with authentic data to prove that the vehicle rates in Pakistan are in fact lower than many countries including India and Thailand but the car dealers successfully tricked the government and resultantly the government relaxed the age of imported used cars up-to five years and car dealers have been openly abusing the policy since then. The local car manufacturer said that now, the car dealers are trying to bring in 10-year-old used vehicles that are considered junk the world over. These vehicles would increase pollution levels in the country and would burden the consumers in long run due to non availability of parts and local capacity for after sales service, they added. The local car manufacturing industry is deeply perturbed by this new demand of the traders lobby. This will not only destroy the local industry but would make Pakistan a junkyard of foreign metal as well as resulting in huge retrenchment, they said. They said that local car manufacturers are not only battling the fight for their survival but they are also trying their best to protect the local auto-vending base from the adverse impacts of the governments decision to allow the import of ten-year old used cars. They said that the relaxation already given in import of the used vehicles is undoing the engineering development made so far in the country by the local auto manufacturers and their vendors and further relaxation will completely destroy the same. They said that existing investment in Pakistan is under great threat and the investors may seek relocations of their plants. The hostile policies of the government will not attract any new investor in the country despite driving away the potential investors, they added. They further added that the government is itself the biggest loser of import relaxations as it is letting massive countrys reserves as on an average a CBU vehicle consumes twice foreign exchange as compared to CKD operations. Auto parts manufacturers criticized the government that instead of facilitating investment in infrastructure and employment generating activities like manufacturing, the government seems bent upon supporting an anti-industry lobby thus turning the country into a trading economy rather than becoming a manufacturing economy. It will not only be a loss to national kitty but more than 2 million local youth will be left unemployed besides the loss of billions of dollars investment at the plants of OEMs and associated vending industry, they warned the authorities. They urged the government to refrain from implementing such policies that will make Pakistan a trading economy but encourage and protect the local engineering industry instead which could save a huge foreign exchange.

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