Auto industry ill-prepared

LAHORE The countrys automotive industry is ill prepared and not taking any initiative to face the flood of auto parts from India following the MFN status to India by Pakistan. According to industry experts, the government as usual is not interested in playing its role in NTB Legal Frame Work setup. Informations available on the website of the Pakistan Commerce Ministry and its quick comparison with the Indian Counterpart shows the understanding level of our policy makers. PAAPAM Chairman Syed Nabeel Hashmi said that there are Pakistan-specific barriers in place in India. These include lack of infrastructure at ports of entry, bureaucratic and administrative mishandling, visa restrictions and surveillance of visitors to India, banking limitations and restrictive trade routes. On the Pakistan side he said that we have a wide loop in evaluation at shipping ports, under invoicing and mis-declaration are some of the major concerns that if addressed, would have given some sort of confidence to local industry. NTBs even if enacted do not play any role if you have porous Shipping ports. He asked the government to consider the fact that the industry contributes 6 percent of total FBR collection; 1.4 million Pakistanis are earning their livelihood through the industry; Automobile Industry constitutes 15 percent of large scale industry and has second largest investment after energy sector in Pakistan. Therefore the government should always restrict auto parts and automobile imports in all their international agreements and commitments e.g. it is already included in its Negative List for Afghan Transit Trade Agreement of 1965; also in the Appendix G for restricting trade of such items from India; and also in the 'Sensitive List for South Asian Free Trade Area [SAFTA]. Sensitive List under SAFTA means allowable imports with 'No tariff concession. Paapam chairman agreed that neither the industry of the country nor the Industry is educated enough and neither is the Government. We are being told to learn the tricks of the WTO but even with NTMs or NTBs in place who is going to correct the faulty import regime of Pakistan. We have porous borders and import regimes that allow valuation and clearance of High Tech engine parts by weight. What would NTBs do there? He proposed imposition of 'Pakistans Automotive Non Tariff Barriers like Pakistans Vehicle Safety Standards, Pakistans Vehicle Quality Standards and Pakistans Vehicle Logistics & Trade Standards etc. "However, this can only be possible through capacity building, including human resource development and availability of vehicle testing equipments, of government agencies like Ministry of Science & Technology, Engineering Development Board and Ministry of Industries & Production," they added. The National Tariff Commission and The Pakistan Standard Quality Control Authority can both play an active role if their capacities are built.

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