Drive to localize Auto Industry in Pakistan is attacked – Research Snipers

Drive to localize Auto Industry in Pakistan is attacked

Engineering Development Board (EDB) Pakistan was the organization responsible for the development of localized auto industry in order to control imports and rely on local auto parts and manufacturers, after the decision to shut down the EDB the drive to localize auto industry would be impacted to a great extent.

The drive to localize the auto industry in Pakistan will face a setback after this decision, the EDB was helping auto vendor industry to grow, it engaged over 300 parts and manufacturers were assisting the industry in achieving greater localization. The localization was achieved by 75 percent in cars, 96 percent in tractors and motorcycles and 80 percent in three-wheelers.

Senior Vice Chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam), Muhammad Ashraf Sheikh said, EDB has played a critical role in promoting the use of local auto parts in the industry,” reported by Tribune.

He also said it was EDB and its efforts which made it possible to grow the local industry to over 300 parts and manufacturers assisting greater localization by 75% in Cars, 96% in tractors and motorcycles and 80% in three-wheelers.

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Mr. Sheikh admired EDB for the aggressive approach to localize the industry and provide an immediate substitute to import enabling the country to save over $3 billion a year. He also criticized the government for not meeting its goals of AIDP 2016-21 policy and not adhering to the policy properly.

It would impact the current growth of localization in Pakistan, said the senior vice chairman Paapam. He also highlighted the EDB and its experience and contribution to protecting the sector during talks for free-trade agreements (FTAs) with other countries.

The government says the new companies entering the auto sector of Pakistan had complained about EDB that it was becoming an obstacle to entry into the market.