Former Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) chairman Mashood Khan has urged the government to uplift exports of automotive sectors, and also shared some of his recommendations.
“The existing AIDP II is quite a relaxed policy and hampers potential of Pakistan’s automotive exports to other strategic regions,” he said, adding that the government should craft a new EV policy to boost technology and produce parts to export from Pakistan.
He said that the automotive sector expert added that the government should create avenues of incentives for those Original Equipment Manufacturers (OEM) who will plan to export left-hand drive vehicles to European countries and Australia.
“In this regard, infrastructure has already been built by way of Gwadar port which is strategically connecting Pakistan with European terrain and will turn out to be a competitive advantage for our country,” reasoned Mashood.
Also, he added, the government should associate all OEMs to channelize local auto parts manufacturers to enter in global supply chain within a period of 5 years.
Moreover, he added, the government should develop an international market research center for the identification of untapped markets and for the nourishment of the automotive industry.
“We can surely start an Export Coaching program for auto parts manufacturers to train them in line with international market norms and procedures,” said Mashood.
Besides, he added, there is a huge requirement of building a design house for every OEM in Pakistan in the initial stage as it will act as a building block towards a strong export base for this industry.
“The government should focus on one model to pick that model for maximizing localization on quality standards and give incentives for EXPORT.,” said Mashood.
Talking about technology transfer’s role in the development of the local auto industry, he said a structured technology transfer program should be in place through which OEMs will initiate Joint ventures and alliances with local auto parts manufacturers within 5 years.
“In order to uplift the auto sector, it is of utmost importance that government should give incentives DTRG to auto parts manufacturers and ensure that norms and procedures should be devised to reach to the end beneficiary in time,” said Mashood.
Regarding the huge increase in the cost of production, he said the auto parts manufacturing is a highly imported intensive industry therefore our public institutions should play a vital role in reducing the raw material dependency of the auto sector.
“Government can initiate construction of plants in collaboration with foreign companies in SEZ Industrial Park to manufacturers essential raw materials like metal, plastic, and rubbers. And to ensure proper quality testing procedures a testing facility can be established in collaboration with renowned international organizations,” he added.
“These initiatives by the government will help us achieve a drastic growth rate and an export target of USD 5 billion will also be within reach,” concluded Mashood.