–Pakistan eying to boost auto exports to $1bn in next five years
The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) is holding its Pakistan Auto Parts Show (PAPS) 2019 at Karachi’s Expo Center during April 12-14 to promote car exports and attract leading companies in the international automotive market.
The PAPS 2019 event will showcase stalls of 244 exhibitors, including 89 local and 106 international companies. Three universities will also take part in the event while procurement departments of Pakistan Railways, Pakistan International Airlines (PIA) and Pakistan Army have been invited to assess the locally manufactured parts’ quality.
The PAAPAM head said that senior government officials, local and international buyers and manufacturers, machinery manufacturers, raw material providers, and service providers are expected to participate in the auto show. “This year’s PAPS is expected to draw a crowd of more than 100,000+ potential visitors from parts manufacturers, component suppliers, auto lovers, and affluent automobile buyers to get a glimpse of the latest models from the world’s leading automakers in the motorcycle, three wheeler, car, tractor, trucks and buses,” he added.
EXPORT TARGET SET AT $1BN: PAAPAM
Pakistan’s auto industry has seen several ups and downs during the last few years due to uneven policies of the government. However, Automotive Development Policy (2016-2021) is one of the good initiatives taken in the past which is expected to benefit the country by attracting investment from new and old automakers.
In pursuance of development of auto industry, the federal government is looking to adopt an export-oriented approach whereby it has been planned to take auto exports to $1 billion in the next five-year plan, according to PAAPAM.
In a pre-event press conference, the PAAPAM leadership said they have discussed new export reforms with the government who has given them the task of lifting the auto export revenue from $70 million to $1 billion by 2024.
PAAPAM Chairman Ashraf Shaikh was of the view that Rupee depreciation could be a blessing in disguise as Pakistan’s labour has resultantly become cheaper than other countries.
Under the ADP, 15 new automakers have availed Greenfield Investment Status while as many as two car companies will invest in the Pakistani automotive industry by reviving their units. The latest entry in the Greenfield Category-A is Volkswagen AG who has planned to set up a plant in Balochistan under a partnership with Karachi-based Premier Motors – the sole distributor of Audi cars in Pakistan.
The event organizers told that the government’s move to revive the Engineering Development Board (EDB), improvement in the structure of regulatory duty on automakers, and the arrival of new entrants can make this target achievable. The PAAPAM members further encouraged domestic vendors and automakers to help increase employment opportunities in the country.