Paapam says tractors’ import to hurt local industry

Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) has said that the import of used tractors will hurt local industry. According to Mumshad Ali, Chairman Paapam, the government after having severe financial loss in the import of used cars was now indulging in a similar venture, which, he termed, vandalism against the tractor industry.

He said that local tractors industry despite being under-utilised was producing best quality tractors that were also cheapest in the world hence its imports would put a further dent on the exchequer.

He said that government had poor experience with foreign players as Chinese tractors had failed competing local industry, due to quality standard and cheap prices. He urged the government to learn from the past and refrain from repeating the same mistake. Mumshad further said that tractor industry was almost independent as 95 percent parts were being locally-manufactured hence there was no need to allow its imports.

Chairman Paapam said import of used tractors would also hurt farmers because there was no quality assurance once it was sold and farmers would remain unable to get spare parts of these used imported tractors. He apprised that local tractor manufacturing consumed 0.1 million ton of steel which was approximately 10 per cent of the total annual production of Pakistan Steel Mills (PSM).

Moreover, Mumshad said that local industry had export potential as they were producing tractors at the cost of around $7000, however, other countries offered same quality tractors at around $14000. Despite taking advantage of this edge, the government is so far unable to evolve national policy for the tractor industry, he lamented. He requested the concerned authority to safeguard and promote the local tractor industry as it would not only generate huge foreign exchange but also create enormous employment opportunities.

Copyright Business Recorder, 2015


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