February 02, 2023 (MLN): The Pakistan Automobile Spare Parts Importers & Dealers Association (PASPIDA) is concerned about blocked imported consignments and non-issuance of Letters of Credit (LCs).
The situation has led to massive smuggling of spare parts and is causing losses for legitimate traders and the national exchequer.
PASPIDA leader Sheikh Haroon Baksh says the high duties imposed by customs authorities are discouraging imports and encouraging smuggling.
PASPIDA has asked the Karachi Chamber of Commerce & Industry (KCCI) to raise these issues with relevant authorities.
The President of KCCI, Mohammed Tariq Yousuf, advised PASPIDA to set up industries in Pakistan for locally manufacturing spare parts to reduce the Current Account deficit.
PASPIDA members agreed but stated they faced several issues including high costs, poor infrastructure, and inconsistent policies, which discourage them from starting such businesses.
They asked the government to provide a favorable business environment by reducing taxes and tariffs and offering incentives for the automobile sector.
