PAAPAM exploring joint ventures with foreign companies to manufacture engine and high-tech parts locally
Pakistan lacks the ability to manufacture high-tech and engine components locally, this increases the forex exposure of local assemblers and when the yen appreciates against Pakistani rupee, the prices increases.
Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has not said the decision to explore joint ventures with foreign companies to build such high-tech parts locally because of rising forex rates however, if any venture materializes, the eventual benefactor would be everyone.
As car prices in India increased, due to rising forex prices and input costs, Maruti Suzuki said that they were aiming for reducing their forex exposure to reduce the impact of rising forex rates by manufacturing parts locally.
“We are seeking technical collaboration with the international companies for high-tech auto parts manufacturing in Pakistan,” said Munir K Bana, chairman of PAAPAM.
While at a briefing about PAAPAM’s visit to Automechanika 2012 in Frankfurt, the newly elected chairman of PAAPAM said that the association is looking forward to developing contacts with the international manufacturers, besides analysing the possibility of joint ventures with them.
who said there's no ability? its the fact that no one wants to invest… no one wants to give decent salaries.. people just want profit with out any investment… and of course the stupid government is there to eat haram only… they are raping the country.
No doubt Pakistan has a great potential especially Human resource..but Big Salaries are paid where companies also earn big..when Pakistan does not have electrictiy, gas, water, law and order..which company will invest in Paksitan..thats the reason most of the talented people in Pakistani are leaving out…No one invest in a loosing economy …
No doubt Pakistan has a great potential especially Human resource..but Big Salaries are paid where companies also earn big..when Pakistan does not have electrictiy, gas, water, law and order..which company will invest in Paksitan..thats the reason most of the talented people in Pakistani are leaving out…No one invest in a loosing economy …
Engro Invested US $ 1 Billion in 2008 to build the worlds Largest Urea Train in Pakistan based on the guarantees of uninterrupted Gas supply by Goverment..Now plant is commissioned and only runs 6 months in a year..because of Gas shortage…So this is a lesson learnt by investor not to invest in Pakistan..Engro is now investing more in the international markets than local….Capital has no country and religion and boarder,,if US Companies gets good return on their invest they invest in China..similarly Pakistani investors are investing in Dubai, INdia, China,,because you get a healthy return..Human resource is not the only determining factor in the investment..
@ Danish Ghafoor, 100% Agreed. Infact there are no loyal people in Government, Nobody thinks for the country but for their own interests. If we have honest, loyal and deserving people on decision making seats then we can think that there can be a good time for this industry… infact for all sectors.