ISLAMABAD, Pakistan: The Minister for Industries and Production Makhdoom Khusro Bukhtiar has brushed aside the perception that despite the establishment of manufacturing units by various automotive manufacturers in Pakistan, a large portion of auto parts are being imported.
Replying to a question by Senator Nuzhat Sadiq told the Senate in writing on Friday that the fact is that most of the auto parts used for assembly of vehicles especially sheet metal parts, plastic, rubber, and glass parts are completely localized except high tech parts e.g. engine and transmission parts, etc., which are being imported.
Importantly, cars have up to 73% locally manufactured parts, tractors up to 90%, and motorcycles up to 95% locally manufactured parts, the minister told.
Further apprising the House of steps being taken by the government to persuade international auto parts manufacturers to set up manufacturing plants in Pakistan, the minister told that the government has enhanced competition in the market under Automotive Development Policy and a number of new OEMs (around 10 investors) have started assembly operations in Pakistan and resulted in increased opportunities for local manufacturing of auto parts.
Khusro Bukhtiar further told that the government has imposed the condition of minimum value addition at 30% from July 1, 2021 to increase local value addition in the manufacturing of auto parts.