Syed Marwan Shah

The Pakistan Railways (PR) is in dire need of indigenously-built spare parts for quick repair of locomotives and wagons in order to ensure an efficient cargo and passenger service, reports WealthPK. Requesting anonymity, a PR official told WealthPK that if a spare part of a locomotive or wagon breaks down or does not work properly, the department imports it, which takes around 6 to 8 months. Meantime, some other part breaks down, affecting the service. This time-consuming process considerably impacts the haulage, he added.

Talking about the passenger wagons, the official said Carriage Factory Islamabad was manufacturing and refurbishing wagons with German and Chinese technologies. Completely Knocked Down (CKD) wagons are being built in the factory. Furthermore, 230 new wagons will arrive in December from China with new technology transfer after which these wagons will be built in Pakistan, the official said. It merits a mention that Chief Executive Officer (CEO) Farrukh Taimur Ghilzai is interested in switching to the locally manufactured components of locomotives and wagons, and in this regard, he recently met with a delegation of Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam).

Farrukh believed that indigenization is the only way to make the Pakistan Railways an efficient and profit-earning department. Commending Taimur Ghilzai’s initiative, the Paapam delegation said their collaboration with the Pakistan Railways will contribute towards promoting the government's vision of indigenization and saving the hard-earned foreign exchange. The delegation members believed that collaboration between Paapam and Pakistan Railways will promote the growth of the local industry, create more job opportunities, and reduce expenditures.

According to WealthPK research, a significant change has taken place in the country's automotive industry as a result of Auto Policy 2016-2021. The policy incentive to allow local assembly for new entrants at mere 5 percent has had a significant impact on the national exchequer in the fiscal year 2022, amounting to $1.7 billion compared to $1.11 billion in the previous fiscal year.

Additionally, Toyota Indus Motor Company uses 55 percent of locally made parts, while Toyota Corolla and Yaris use more than 65 percent of locally made parts. Furthermore, Pak Suzuki Motor Company Ltd (PSMCL) informed the market that localization in Swift was 35 percent followed by 51 percent in Cultus, 60 percent in Wagon R, 62 percent in Alto 660cc, 72 percent in Bolan, and 68 percent in Ravi. Lastly, the Pakistan Railways needs indigenously-built components rather than importing them at a price which is too unsustainable for the department and the country. This will not only boost the local industry, but also open up more job opportunities.

Credit: Independent News Pakistan-WealthPk