AIDEC calls for ban, penalties on import of used auto parts

August 21, 2024 (MLN): The Auto Industry Development and Export Committee (AIDEC), in its 5th meeting held yesterday, agreed that a ban and penalties should be imposed on the import of used auto parts.

According to a press release, the meeting, chaired by Federal Minister for Industries and Production Rana Tanveer Hussain, included other government officials and representatives from the automobile industry.

The Auto Industry emphasized on experiencing difficulty in export of vehicles from Pakistan due to imposition of increased Duty and Tax structure as the Auto industry.

The auto industry emphasized the dire need to sign Free Trade Agreements (FTA) / Preferential Trade Agreements (PTAs) and acquire consistent policies to enable the localization of parts and components to make the 2, 3 and 4 wheelers to achieve competitiveness in the International Market.

The auto parts vendors, on the other hand, highlighted that once a part is localized, the variant of part discontinues, as a result the vendors face huge losses.

The vendors recommended that, if one OEM localises a part, that shall be used by other OEMs requiring similar parts and localization of parts and sub components should be time bound.

The Minister concluded the meeting by recommending Auto industrialists to work on improving the quality, price and exports by Auto Industry in International market.

He further directed to make a sub-committee that shall review and address the issues of Auto Industry on a quarterly basis in terms of regulatory assistance required for exports in international market.

He also directed the device Auto Parts Manufacturing Policy aligned with its allied industry as localisation of auto parts would result in competitive pricing of Pakistani made Auto vehicles in international market.

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