Pakistani entrepreneurs are optimistic about importing auto parts from my country

As our country has become one of Southeast Asia's automotive industry development centers and is very popular among Pakistani automotive entrepreneurs, the Lahore Chamber of Commerce and Industry is optimistic about the prospect of selling Indonesian parts and components.

Chinese Ambassador to Pakistan Iwan (Iwan Suyudhie Amrie) recently held a meeting with Malik Tahir Javaid, Chairman of the Lahore Chamber of Commerce and Industry, and raised business opportunities related to the import of Indonesian components.

The chairman of the Lahore Chamber of Commerce and Industry stated that his company imports parts and components from Indonesia each year for a total of 1.1 million U.S. dollars.

When Pakistani entrepreneurs visited the Indonesia Trade Fair (TEI) in mid-October this year, they had signed commercial contracts with Indonesian companies totaling 800,000 US dollars. In addition, many truck parts are imported from Indonesia, totaling more than US$500,000.

"The competitiveness of my country's component quality is one of the factors that promotes the strengthening of bilateral trade relations between the two countries," he said.

At present, the import tax levied on several types of auto parts in my country is higher than the import tax levied on similar products in China. When the two countries are engaged in trade cooperation, they are firmly committed to improving the efficiency of the Preferential Trade Agreement (PTA) and continuing to move towards the Free Trade Agreement (FTA).

He believes that according to the third review of preferential trade agreements in August 2017, mangoes from Punjab in 2018 can be imported into my country. In addition, Jeruk Kino from Punjab Province has been able to enter the local market from December 2016 to April this year.

Malik, Chairman of the Lahore Chamber of Commerce and Industry, welcomed the delegation of the Lahore Chamber of Commerce and Industry to visit Indonesia in February 2018. They hope that the Indonesian Embassy in Islamabad, Pakistan can assist them in holding business-to-business meetings with their Indonesian partners.

As the population of Pakistan’s middle class continues to grow to 80 million people, the country’s automobile industry is actively growing. In addition, the development and logistics activities of the "China-Pakistan Economic Corridor" (CPEC) project have increased the demand for truck parts in Pakistan.

In addition, the measures to open up new roads in various provinces and regions in Pakistan have also promoted the increase in car sales, and the demand for car parts has also increased. According to data from the Pakistan Automobile Manufacturers Association (PAMA), between July and September 2017, car sales increased by 27% over the same period in 2016 to 60,470 units.

To meet the demand for auto parts, Pakistan imports auto parts from China, Thailand, Turkey, and my country. Pakistan's total imports of parts and components reached 29.2 billion U.S. dollars. China is the largest component exporter with a total value of 4.79 billion U.S. dollars, followed by Thailand with a total value of 814.4 million U.S. dollars.