RECORDER REPORT

KARACHI: The government has completely neglected the auto industry in the federal budget 2020-21.

Commenting on the federal budget 2020-21 announced at National Assembly on June 12, 2020, Mashood Ali Khan, Director Export, Mehran Commercial Enterprises and Former Chairman Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) said that the budget was not promising to the manufacturers.

He said that auto industry was based on three triangles like auto parts manufacturers (APM), Original Equipment Manufacturers (OEM) and Registered Dealers Network (RDN) and added that APM requested the government to abolish ACD, ASD from imported raw materials while OEM suggested to remove FED and minimum turnover tax from 1.5 percent to 0.5 percent and RDN urged to defer CNIC at the time of buying at least for one year. However, no demand has been accepted in this budget that will create more difficulties for the manufacturers to revive the industry.

He questioned that if the local industry players had been neglected completely and the government was unable to recognize their role and contribution for the national exchequer then no new investors will pour investments in the country and will show their lack of confidence and trust on governmental measures.