Pakistan is Targeting $1 Billion of Auto Parts Export by 2024

The federal government has set a target to take the local auto parts export to $1 billion in the next five years.

This was revealed in a statement from Muhammad Ashraf Shaikh, the Chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) on Monday.

The statement came on the occasion of Pakistan Auto Parts Show 2019 which was attended by a total of 244 exhibitors including 106 international exhibitors, 89 domestic exhibitors, 18 support organizations and three universities.

Speaking on the occasion, former PAAPAM Chairman Muhammad Shariq Suhail said,

The government has discussed export policy with auto parts manufacturers and has given them the task of increasing exports to $1 billion (over five years) from just $70 million per annum.

Earlier, only manufacturers with contacts in the international market considered exporting their products. But, the government has now made it possible for all local vendors, he said.

The government has shifted its focus to the entire market. As a result, the whole market will become export-oriented, he said.

Mr. Shariq said that currently, the auto parts’ global trade is worth more than $800 billion, which, in 2023 will cross $1 trillion.

The task of $1 billion in exports from Pakistan is difficult, but not impossible, as we have targeted only 0.1% of the global trade, he added.

To achieve the one-billion-dollar export target, the government is heading in the right direction. Not only it has improved the regulatory duty structure but has revived the Engineering Development Board (EDB) as well.

The government has also formed a committee which would meet with the auto parts manufacturers twice a month to review the progress, the former chairman said.

He added that the devaluation of local currency had made labor in Pakistan cheaper and competitive, making it easier for foreign companies to set up plants in the country.

He reflected that recently, leading international brands including Kia Motors, Volkswagen and others have entered the Pakistani market, and more global players are expected to come soon.

Source: Pro Pakistan