New auto policy makes auto parts maker unhappy
  Aug 31, 2023     talha seo  


Abdul Rehman Aizaz, Chairman of the Pakistan Association of Auto Parts and Accessories Manufacturers (PAAPAM), expressed surprise at the government's decision to lower the Additional Customs Duty (ACD) on the import of Completely Knocked Down (CKD) and Completely Built-Up (CBU) car parts, even though raw materials imported by vendors under SRO 655 were not exempted. He called it "extremely regrettable," and said it contradicted the government's vision of job creation.


Mashood Ali Khan, an automobile expert, stated in response to the recent SRO 845(I) 2021 that the additional customs duty on raw materials was impeding the growth of the auto parts manufacturing segment.

He said: “This action will not benefit the local parts manufacturing segment, which is one of the most essential industries in Pakistan.”


The government must give special attention to the auto parts segment and reduce the additional customs duty on raw materials imported by it to foster the growth of this vital sector and significantly reduce the cost of production.


However, Ali Asghar Jamali, Chairman of the Pakistan Automotive Manufacturers Association (PAMA), stated that the industry appreciated the announcement of the new auto policy. “I am confident that the new auto policy will benefit all stakeholders, including customers, industry, auto parts manufacturers, and the government,” Jamali said.

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