The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has issued a distress call to Federal Finance Minister Ishaq Dar, urging that automobile assembly kits and auto parts imports be removed off the list of “non-essential items” as soon as possible.
Automobile Industry Closure
The association noted in a letter to the finance minister that auto parts makers save $1.5 billion per year through import substitution and contribute more than 5% of the country’s tax income.
PAAPAM Chairman Munir Bana informed the minister that the association’s members employ approximately 3 million Pakistani employees, technicians, engineers, and management experts on various projects, both directly and indirectly. He claimed that those employees are now facing layoffs as the industry faces shutdown.
As a result of escalating inflation, currency depreciation, and record-high markup rates, the association recommended that all banks open all LCs for imports by genuine part makers and dealers.
According to PAPAAM’s letter to the finance minister:
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.
The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has written to Federal Finance Minister Ishaq Dar, pleading with him to remove auto/auto parts imports from the list of “non-essential items,” as auto parts manufacturers save $1.5 billion per year through import substitution and contribute more than 5% of the country’s tax revenues.
PAAPAM Chairman Munir Bana informed the minister that its members, the auto parts companies, directly and indirectly employ over 3 million Pakistani workers, technicians, engineers, and management professionals, all of whom are facing layoffs, as the industry as a whole is on the verge of closure.
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To read our blog on “Trucking giant Trella plans to shut down in Pakistan in 2023,” click here
