Latest news with #PAAPAM
Express Tribune
11 hours ago
- Automotive
- Express Tribune
Govt eyes tractor policy for agri-mechanisation
Listen to article Minister for National Food Security and Research Rana Tanveer Hussain met a delegation from the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) on Thursday to discuss a proposed National Tractor Policy aimed at boosting agricultural mechanisation, productivity, and export potential. The PAAPAM delegation noted that the tractor industry contributes $400 million annually to the economy and argued that a coherent policy could raise this to $1 billion through enhanced exports, job creation, and technology transfer. They emphasised that affordable access to modern tractors is essential for improving farm productivity and ensuring national food security. Hussain agreed that mechanisation is vital for better crop yields and reduced post-harvest losses. He assured the government's support and pledged coordination with the Ministry of Industries and Engineering Development Board to develop an integrated policy. Separately, Sindh Agriculture University (SAU), Tandojam, announced a multi-disciplinary conference to align academic programmes with market needs. Speaking at the renovated Molecular Parasitology Laboratory, Dr Altaf Ali Siyal stressed the economic potential of agriculture and livestock and highlighted SAU's work on indigenous breeds. Senior faculty shared updates on climate impact, research, and diagnostics. The Sindh HEC has recognised the lab as a scientific research centre.
Business Recorder
6 days ago
- Automotive
- Business Recorder
PAAPAM concerned at proposed National Tariff Policy 2025-30
LAHORE: The Pakistan Association of Auto Parts Manufacturers (PAAPAM) convened an extraordinary general meeting to discuss the government's proposed National Tariff Policy 2025–30. Members expressed grave concerns over the policy's anticipated negative impact on the auto parts manufacturing sector, warning that its implementation could lead to widespread industry closures and severe job losses. The PAAPAM leadership briefed members on a series of meetings held with the Ministry of Industries and Production (MOIP) and the Engineering Development Board (EDB) to highlight the damaging effects of the tariff rationalisation. The members condemned the unilateral acceptance of recommendations from IMF Consultants, reiterating that such a move fails to account for the fundamental role of the auto parts sector in supplying components to Pakistan's local OEMs—supporting the production of cars, tractors, motorcycles, trucks, buses, and defense/railway equipment. Industry stakeholders emphasised that the proposed tariff reduction would shift Pakistan's economy towards imports rather than local industrialization, deepening reliance on foreign products and depleting the country's already limited foreign exchange reserves. They warned that this policy threatens economic stability, as the financial resources needed for industrial growth will instead be drained by excessive imports. Furthermore, the PAAPAM members highlighted that the auto parts industry serves as a critical training ground for human resource development, equipping skilled workers with engineering and industrial expertise. These trained professionals often secure overseas employment, contributing to national remittances and global workforce competitiveness. The closure of domestic industries due to the tariff change would effectively halt this human resource development pipeline, leading to a shortage of skilled labor and restricting opportunities for Pakistan's workforce in international markets. 'We urged the government to adopt a strategic and structured approach to tariff adjustments instead of implementing abrupt changes that destabilize the industry,' said PAAPAM Chairman Usman Aslam Malik. 'The livelihoods of thousands of skilled workers and the long-term sustainability of Pakistan's industrial sector depend on a policy that nurtures local manufacturing rather than exposing it to unfair competition from imports.' Echoing this sentiment, PAAPAM Senior Vice Chairman Shehryar Qadir emphasised the critical need for an inclusive and well-informed policy framework. 'Pakistan's auto parts industry has worked tirelessly to enhance quality, innovation, and efficiency,' he stated. 'A sudden tariff reduction would undo decades of progress and place local manufacturers at an unfair disadvantage against international suppliers. The government must prioritize industrial sustainability through policies that foster growth rather than hinder it.' The PAAPAM remains committed to constructive engagement with policymakers to ensure an industrial framework that supports local manufacturers, preserves jobs, and strengthens Pakistan's economic resilience. The association calls for establishing a balanced and sustainable tariff structure after consultation with industry stakeholders. Copyright Business Recorder, 2025
Business Recorder
23-05-2025
- Automotive
- Business Recorder
Auto parts makers concerned over 15pc proposed duty
ISLAMABAD: Auto parts manufacturers expressed concerns that the proposed 15 percent customs duty could have a negative impact on the industry's development and overall competitiveness. A high-level meeting was held under the chairmanship of Special Assistant to the Prime Minister, Haroon Akhtar Khan, to discuss tariff issues related to the auto parts industry. The meeting brought together representatives from PAAPAM (Pakistan Automotive Parts and Accessories Manufacturers), officials from the Federal Board of Revenue (FBR), the Engineering Development Board, the Secretary of the Ministry of Industries and Production, Saif Anjum, and Secretary Commerce Jawad Paul. During the meeting, Haroon Akhtar Khan emphasised that the grievances of the auto parts industry would be formally presented before the Tariff Policy Board. He directed PAAPAM to provide a detailed analysis of the level of protection the industry requires to remain competitive and sustainable. In line with the prime minister's directives, incentives will be provided to those industries that demonstrate increased productivity. This step aims to encourage growth and enhance the performance of the sector. However, auto parts manufacturers expressed concerns that the proposed 15 per cent customs duty could have a negative impact on the industry's development and overall competitiveness. Haroon Akhtar Khan assured the manufacturers that they should place their trust in Prime Minister Shehbaz Sharif, affirming that their case would be strongly represented and defended before the Tariff Policy Board. Furthermore, he instructed PAAPAM to submit brief reports to be reviewed in the next meeting to ensure continuous dialogue and progress on these issues. Copyright Business Recorder, 2025
Business Recorder
21-05-2025
- Automotive
- Business Recorder
PAAPAM says concerned at National Tariff Policy
LAHORE: The Pakistan Association of Auto Parts Manufacturers (PAAPAM) has raised serious concerns over the government's newly announced National Tariff Policy 2025–30, warning that its implementation as currently envisioned could lead to the closure of a majority of local auto parts manufacturing firms. The policy, which sets a 15% peak tariff, threatens to destabilize Pakistan's industrial sector by exposing domestic manufacturers to an influx of lower-cost imports. PAAPAM Chairman Usman Aslam Malik emphasized that the auto parts industry has been a cornerstone of Pakistan's industrial development, supporting thousands of skilled workers and contributing significantly to economic stability. However, the abrupt tariff rationalization could result in the loss of up to 500,000 jobs, severely impacting livelihoods and weakening the country's manufacturing base. The restrictive 0%–15% tariff spread leaves no room for a structured cascading tariff system, which is essential for balanced industrial growth. Additionally, high energy tariffs, inefficient labour markets, and complex taxation structures already make local production difficult, and the new policy could further hinder competitiveness. PAAPAM also highlights the unfair global comparison, noting that China previously offered a 13% export rebate on certain products while Pakistan's duty drawback rate is 2%. This disparity places local manufacturers at a significant disadvantage in international markets, making it harder for them to compete globally. Furthermore, rising imports due to lower tariffs may exacerbate foreign exchange challenges, putting further pressure on Pakistan's reserves. The claim that trade liberalization alone can drive export growth is unrealistic unless the domestic market is strengthened to support sustainable industrial expansion. PAAPAM warns that, the envisioned tariff rationalization could lead to widespread factory shutdowns, crippling Pakistan's industrial backbone. Given these concerns, PAAPAM strongly urges the government to retain the present tariff structure for one year and only implement revisions after thorough deliberation and consultation with all stakeholders. A carefully planned, phased approach would allow domestic industries to adapt while mitigating the risks posed by a sudden reduction in tariffs. Implementing the revised tariff structure hastily would be disastrous for local manufacturing, forcing businesses into closures and jeopardizing thousands of jobs. Policymakers must ensure that any changes are introduced gradually, with comprehensive input from industry leaders and economic experts to avoid irreparable harm to Pakistan's industrial sector. 'Our industry has made significant strides in quality, innovation, and supply chain efficiency, yet these advancements risk being undone by the new tariff policy,' said Shehryar Qadir, Senior Vice Chairman of PAAPAM. 'We call for open dialogue with government stakeholders to craft a balanced strategy that supports industrial sustainability while maintaining competitiveness.' PAAPAM remains committed to advocating for policies that foster sustainable growth, employment opportunities, and national economic resilience. The association looks forward to constructive engagement with policymakers to develop solutions that support Pakistan's auto parts industry and the broader industrial economy. Copyright Business Recorder, 2025
Express Tribune
20-05-2025
- Automotive
- Express Tribune
Auto parts makers decry new tariff policy
Listen to article The Pakistan Association of Auto Parts Manufacturers (PAAPAM) has raised serious concerns over the government's newly announced National Tariff Policy 202530, warning that its implementation could result in the closure of a majority of local auto parts manufacturing firms. The policy, which sets a 15% peak tariff, risks destabilising Pakistan's industrial sector by exposing domestic manufacturers to a flood of low-cost imports. According to a statement, PAAPAM Chairman Usman Aslam Malik stressed that the auto parts industry has long supported industrial development, employing thousands of skilled workers and contributing to economic stability. However, the abrupt tariff rationalisation may cause the loss of up to 500,000 jobs, severely impacting livelihoods and weakening the country's manufacturing base. The narrow 0%-15% tariff spread allows no room for a cascading tariff structurecrucial for balanced growth. Coupled with high energy tariffs, inefficient labour markets, and complex taxation, the new policy may further erode competitiveness. PAAPAM also criticised unfair global comparisons, noting that China provided a 13% export rebate on certain products, while Pakistan's duty drawback rate stands at just 2%. This disparity hampers global competitiveness. Moreover, rising imports due to reduced tariffs may worsen foreign exchange reserves. PAAPAM argues that liberalised trade cannot spur exports unless the domestic market is robust enough to support sustainable expansion. Given these issues, PAAPAM urged the government to retain the existing tariff structure for one year and adopt any changes only after thorough consultation with stakeholders. A gradual, phased approach would help industries adjust while minimising the risks of sudden tariff cuts.
