Paapam, the Pakistan Association of Automotive Parts and Accessories Manufacturers has conveyed to Federal Government its serious reservations on inclusion of Pakistan auto sector in FTA, the Pakistan Thailand free trade agreement.
Paapam took the opportunity to write a letter to the Ministry of Commerce Secretary to convey the reservations of the sector. It reads that the Auto Parts Manufacturers are deeply concerned and disturbed by the ongoing negotiations between Thailand and Pakistan aimed at the conclusion of free trade agreement between the two countries.
The letter brought into light the fact that Pakistan’s automobile sector is governed by the ADP 2016-2021, the Automotive Development Plan. It is also pertinent to mention here that this plan was announced by the government in the month of March, 2016 and elaborates on the pillars of growth in this sector for the next 5 years i.e. from 2016-2021.
The Present Booming Scenario
Paapam, the Pakistan Association of Automotive Parts and Accessories Manufacturers, suggested that the auto policy played an important role in boosting of the Pakistan assembling sector which witnessed an increased activity owing to the positive outcomes of this policy. The letter further stated that existing assemblers are in full swing to launch their new vehicles and models in the upcoming years 2017, 2018 and 2019. However, it is not all as various global manufacturers too are all set to enter the Pakistan auto sector including FAW, kia, Hyundai, Renault along with other Chinese automobile manufacturers.
Concerns and Reservations
Pakistan Association of Automotive Parts and Accessories Manufacturers expressed its concerns over the inclusion of the sector in the FTA. It fears that it may jeopardize the future of the booming sector. More importantly it could also endanger the future of the 3 million people who are associated with this sector and meddle with the entry of new players in this sector as an unstable government policy may prove to be a hindrance in their entrance.