Pakistan: Japanese envoy urged to arrange indigenisation of cars' parts

Business Recorder - Vice President SAARC CCI and former President Pakistan Federation of Chamber of Commerce and Industry, Iftikhar Ali Malik while exchanging views with the Ambassador of Japan Hiroshi Oe at the LCCI urged the Japanese car assemblers/ manufacturers to localise/indigenise auto parts of their cars up to 90 percent to bring down prices of automobiles in Pakistan.

He told the Japanese Envoy that business environment has further improved for the local car assemblers/manufacturers with the reduction in age limit of used cars imported in Pakistan by two years. Malik said Japan is one of the biggest world economic leaders and its assistance in technical, financial and investment portfolios plays immensely important role in the economic development of Pakistan. In the auto industry, Japanese role is commendable.

Malik said that Pakistan has a strong base of 400 auto vendors. If requisite technology is transferred and shared with them, Pakistani vendors could manufacture auto parts as OEM and provide high quality market services in the region. "With transfer of technology by the major manufacturers of cars/trucks in Pakistan or having equity in such companies, vendor industry in Pakistan can grow and successfully penetrate the markets of Central Asia, SAARC and D-8 countries for Japanese vehicles and auto parts business.

Malik further said that the negative perception of Pakistan will be removed with improvement in environment of conflicted areas. Japanese investors should, therefore, invest in Pakistan without any hesitation and take advantage of available natural resources of Pakistan to the mutual benefit of both the countries. Energy, gas exploration and mining industry at this point could be the attractive sectors for investment, he added.