Increase in regulatory duties hurting auto-parts industry, on the brink of collapse and endangering 200,000 jobs
Karachi: Regulatory duties imposed by the government in the next financial year’s budget are irking Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM). According to its Chairman Mashood Ali Khan, the imposition of regulatory duties has paved the way for the destruction of auto-engineering sector and forcing companies to wind up their operations.
Khan said the imposition of 30pc regulatory duties on products not being manufactured in Pakistan wasn’t the right move and those being produced here do not meet the quality standards the auto industry requires. He highlighted that the auto-parts industry was on the brink of capitulation and collapse due to the imposition of 30pc regulatory duty since the last three years.
He elaborated that several industrial units were on the brink of collapse and closure, which would endanger 200,000 employees and their very livelihood. Since steel prices have been rising globally, it was becoming unbearable to burden further increases in regulatory duties, he added. Pakistan’s exports have dropped only because we have become 30% more expensive than our competitors due to this duty”, Khan said.
