The year 2016 has proven itself to be a year of revival for automotive industry in Pakistan. The automotive industry is enjoying profitability and sustainability so far; production in the manufacturing sector is great as interest rates being all time low, also industry is boosting due to Government’s new automotive policy 2016-21.
Significant developments that will maximize the potential of Pakistan’s automotive industry are as follows:
Potential increase in Pakistan’s Automotive Spare Parts Demands Overseas
This year earlier almost 14 Pakistan’s auto parts manufacturers participated in Michigan automotive components manufacturers exhibition (ACME), which helped them in creating awareness among international spare parts buyers and manufacturers; that how cheap and cost-effective spare parts are being prepared in Pakistan, which will certainly help Pakistani spare parts manufacturers to leave their mark on global level. Hopefully, if things go well then local and international manufacturers will surely do collaborations and will make spare parts of automobiles in a more dynamic way.
Upgrading of workers through extensive training programs and check on quality of newly made automobiles
Technical education, Vocational training authority (VTA) and Pakistan association of automobiles (PAA) are going to establish training sessions across the country for the automobile workers, which will help to make more creative, dedicated and skilled workers and this will improve the quality of the product as a whole. Training includes sheet metal casting, forging and injection molding. Also, the technical or engineering board will be established to check the quality of newly manufactured cars, trucks, and bikes and will ensure that no outdated technology is used in manufacturing process.
Engaging international manufacturers
As the month started, Government revised its tax policy and allowed new manufacturers to import heavy machinery and spare parts with 25 percent duty. They can also buy machines to create an assembly line under the duty-free policy. This step by Government can surely attract global manufacturers to operate from Pakistan.