LAHORE (July 24 2008): Pakistan Auto Parts Exporters Association (Papea) Chairman Tahir Javed Malik has strongly opposed the government decision to import CNG buses from India and said it would kill the domestic auto-parts manufacturing industry.
Talking to Business Recorder here on Wednesday, Malik said India was very developed and far ahead of Pakistani industry while at the same time it had given a lot of protections and incentives to its industrial sector.
He demanded of the government to withdraw its decision, saying: "We are unable to compete with them in this trade." Former chairman of Pakistan Association of Automotive Parts & Accessories Manufacturers PAPAAM Chairman Syed Nabeel Hashmi while reacting to the government decision said that this trade policy was a bomb-shell for the local industry.
He said that in India they converted their diesel buses to CNG and that technology could be introduced in Pakistan by encouraging the local industry. He was amazed that the government had allowed import of used LPG gas cylinders and old buses and alleged that it might have been allowed to benefit some people. He said: "We had buses here and industry, too, and could easily ask our people to work on this technology and convert the present fleet of buses from diesel to CNG.
Meanwhile, some industrialists have demanded that import of CNG buses from India should be linked with Indian investment and transfer of technology to the Pakistani vendor industry.Talking to Business Recorder former president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Iftikhar Ali Malik said that the government should select only Indian assemblers, who give guarantee to invest in Pakistan, establish manufacturing plants, transfer the necessary know-how to local vendor industry and also ensure buy back arrangements.
Iftikhar Malik, who is also a former chairman, Pakistan Automobile Spare Parts Importers & Dealers Association, said that permission to import second hand prime movers buses under TR and special purpose trucks in the Trade Policy 2008-09 has proved that successive governments have failed to implement the deletion programme. "Had Pakistan diligently followed its deletion programme, it would have been not only self-sufficient in case of Japanese vehicles like Hino, UD Nissan but also exporting to other countries", he added.
Malik regretted that Pakistan has been made paradise for the automobile assemblers, which had not passed any worthwhile technology to the Pakistani vendor industry though it has adequate in house engineering facilities to produce such parts. He quoted the shining example of Massey Ferguson UK Tractors as an example that has achieved over 90 percent deletion.
He, who has over 30 years experience of the engineering industry, said that Asian countries, which strictly implemented their deletion programme have now acquired the technical know-how to manufacture complete vehicles with the help of local vendor industry. However, in Pakistan, successive governments allowed import of junk under various schemes and wasted foreign exchange.
Malik also suggested that the Japanese should also be asked to base their next automobile units in Pakistan on local vendor industry to benefit the development of small industries.
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