The Pakistan Association of Automotive Parts and Accessories Manufactures (PAAPAM) has expressed its deepest concern over the industry's rapidly deteriorating situation. In an emergency meeting held at the PAAPAM office, the Association expressed its grave concern over the falling value of the industries’ assets due to the falling exchange rate coupled with the layoff of 150 to 200 trained and skilled employees daily.

The Association pointed out that car sales plummeted by 50 percent during July–August 2022 owing to conditions imposed for import of Completely Knocked Down (CKD) units. During this period, the industry was at least able to marginally keep afloat. The Association said the government’s own tax collection had taken a massive dip. The restriction to import materials had put the auto sector in a precarious situation. The Association asked how the industry will resist closure without availability of the basic raw materials of OEM CKD.

‘’Auto industry is a global network with a global supply chain. Once Pakistan gets off this network, resumption would become very difficult. We are very, very concerned that the Government of Pakistan is not apprehending or understanding the serious damage that is affecting the image of Pakistan. These are unwise decisions and need to be rolled back immediately," said Chairman PAAPAM Munir K. Bana.The meeting called for the resumption of LCs opening and immediate resumption of at least 50% of YOY raw material and CKD import till the situation normalizes.

"Our current position is that the industry wants to keep itself afloat and not close down, as it would be a national loss. We request the authorities to urgently take stock of the auto sector and steer it out of this precarious situation," said Usman Aslam Malik, Senior Vice Chairman PAAPAM.

Credit: Independent News Pakistan-WealthPk