Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) Senior Vice Chairman Usman Aslam Malik has emphasised the need of expanding bilateral trade with the global market, particularly Africa and other non-traditional markets, to find more clients for Pakistan's auto parts exports.

He was speaking to a group of ambassadors and commercial heads, who visited the PAAPAM Head Office. The delegates from Bulgaria, Kenya, Maldives, Somalia, South Africa, Sudan, Tajikistan, Turkmenistan and Uzbekistan, headed by Foreign Service Academy Director Irfan Shoukat, took keen interest in strengthening bilateral relations and trade, particularly in the auto sector, with Pakistan.

They saw Pakistan's enormous potential for producing car parts that could be shipped to their countries. The delegation also provided information on the raw materials that Pakistan's car parts sector could import from their countries.

Ivan Kotov, the ambassador of Bulgaria, extended an invitation to PAAPAM members to visit Albania, which is conveniently situated in Eastern Europe. Dr. Calleb Ongoma, a diplomat from Kenya, stated that because of the unique favourable trade accords, his country serves as a gateway to several of its neighbours.

The other foreign dignitaries also extended invitations to PAAPAM members to travel to their countries to explore export markets and import raw materials. Usman Malik delivered a comprehensive presentation on the technical innovations, quality standards, and output capabilities of PAAPAM members. He said that a group of PAAPAM members is scheduled to visit the African market to look into the possibility of bilateral trade.

He said that Pakistan must urgently diversify its export base by pursuing non-traditional markets and products. One of the goods with a lot of potential for exporting is auto parts and accessories. Usman Malik said that Central Asia, Africa, South America, and Russia are all lucrative markets for Pakistani auto parts. By establishing a company presence in these regions, it may be possible to overcome the logistical obstacles, banking difficulties, trust gap, and fear of the unknown, he continued.

Usman Malik urged the government to aid the car components sector, which has the potential to bring great amounts of foreign currency. He said that suppliers of car components have the potential to gain market share on a global scale and that the government should concentrate on maximising that potential.

According to the PAAPAM senior vice chairman, the car sector has the capacity to drive the country's economic growth and make a significant contribution to job creation and industrial investment, if given the right conditions. He believed that since the car sector is the mother of other industries, the government should create laws to promote it.

Usman Malik said that Pakistan has abundant human resources, which presents tremendous opportunity for expansion in the automotive industry. Several international original equipment manufacturers (OEMs) have established assembly factories in Pakistan, where the auto industry is thriving. These OEMs use up to 90% local parts, which are supplied by a network of cottage industry suppliers, he added.

Syed Nabeel Hashmi, a former chairman of PAAPAM, answered many inquiries from the delegation's members by outlining the present state of Pakistan's car industry. Hashmi also informed the delegates of Pakistan's potential for joint ventures in the car industry.

Credit: Independent News Pakistan-WealthPk