The Pakistan Auto Industry might permanently close as a result of growing inflation, currency depreciation, and record-high markup rates, thus the group asked all banks to issue all Letters of Credit (LCs) for imports by genuine part producers and sellers. PAAPAM warns that if prompt action is not taken to save the “mother of all industries,” a tragedy will occur. Millions of jobs would be lost, localization efforts would be reversed, and all car assemblers would bring back their foreign investments as the whole auto components business would permanently shut down.
The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has sent an SOS to Federal Finance Minister Ishaq Dar asking him to remove imports of automobiles and auto parts from the list of ‘non-essential’ goods. The auto parts manufacturers save the nation’s currency to the tune of $1.5 billion annually through import substitution and provide more than 5% of the nation’s tax revenues.
Over 3 million Pakistani workers, technicians, engineers, and management professionals, who are facing layoffs as the entire sector is on the verge of closure, were informed of this by the Chairman of PAAPAM, Munir Bana, to the Honorable Minister.
