Proposed Auto Policy: PAMA asks Secy I&P to share draft before finalisation

Karachi: The Pakistan Automotive Manufacturers Association (PAMA) has urged the secretary of Industries & Production to share the draft of the proposed Auto Policy with the industry before finalizing it. This comes amid concerns that the draft, which may soon be submitted to the Prime Minister for approval, could impose harsh penalties on manufacturers, such as increased tariffs and the suspension of manufacturing licenses if export targets are not met.

PAMA's Director General, Razi ur Rahman, emphasized that while boosting exports is crucial for developing Pakistan's automotive sector and improving the country's foreign exchange earnings, punitive measures should not be the approach. Instead, he proposed incentives, facilitation, and a predictable policy framework to achieve these goals.

Rahman stressed that the industry is committed to collaborating with the Ministry of Industry and Production and the Engineering Development Board (EDB) to create a policy that bolsters the domestic sector, encourages investment and localization, and gradually establishes Pakistan as a competitive manufacturing and export hub. He added that export development is a long-term process that requires investments in technology, product development, localization, economies of scale, international certifications, market expansion, and the establishment of competitive supply chains.

Furthermore, Rahman noted that factors beyond manufacturers' control, including international market conditions, exchange rates, trade agreements, logistics, and the overall business environment's competitiveness, also influence the ability to meet export targets. PAMA believes that the new policy should provide a stable, transparent, and consultative framework with clear, attainable objectives and incentives for manufacturers and the vendor industry to invest in exports and international competitiveness.