Is Pakistan Ready For the Growth of Automobile Industry?
The automobile industry in Pakistan began to fulfill the domestic goals of the developing country, laying out manufacturing base, import replacement, foreign trade and employment creation, human resource advancement and foreign investment. The automobile industry is one of the primary industries of Pakistan. A lot of investments has been made on research and development areas in this regard. With new technologies in the automobile industry of Pakistan can progress at a faster pace.
There are two main regions where the automobile industry of Pakistan is located. These are Azadabad and Islamabad. Both these cities have the potential to become manufacturing hubs. The automotive industry of Pakistan will be benefited by the introduction of new technology, better infrastructure and the right supply chain. With these three elements, the growth and development of the automobile industry of Pakistan will become progressive.
Pakistan has a huge potential as an automobile manufacturing and vendor industry. There is sufficient scope of increasing the production and productivity. As a buyer’s market, the prices are low and the quality is up to the mark. The government of Pakistan is pro-active to promote the manufacturing sector of this country. There are new schemes started for helping the common man. In addition, there are many projects implemented by the federal and provincial governments of Pakistan to improve the quality standards in the manufacturing units of this country.
The biggest advantage of this industrial sector is that it offers job opportunities to the working class. This is a major positive point for the overall economy of Pakistan. Since the automotive sector of Pakistan is not big in terms of capital and equipment, it makes the integration much easier for the workers of the automobile industry. It is expected that the quality standards of the engineers and other personnel of this industry will be maintained at all times. This will help to maintain the standard of living of the people in this country.
The biggest challenge faced by the Pakistani automotive sector is the introduction of the elimination programs in the early stages of development. The introduction of such programs has resulted in the success of the Pakistani automobile industry. The implementation of such programs has helped the automotive firms to reduce their input costs and their output costs. This has increased the competitiveness in the market.
Another significant factor responsible for the success of the Pakistani automobile industry is the skilled manpower it has attracted. There are many skilled manpower from the Asia, particularly, from the Asian sub-continent. These people come with proper expertise and trained. They are also provided with proper work and house training. Thus, the companies of Pakistan are able to get skilled workers at lower cost of salaries. This is another major positive factor of this industry.
The success of Pakistani car manufacturers is due to the effective assistance extended by the government of Pakistan. The economic policy of the government of Pakistan is highly beneficial to the automotive sector. The policy has helped both small and large scale auto vendors and assemblers. The large scale assemblers have been helped through various grants provided by the federal government. These grants are meant for the development of the local economy including the automobile industry. Most of the local companies have received assistance from these grants and also this has helped them in developing their manufacturing plants and also getting new auto dealerships.
The automobile industry of Pakistan is developed through the importation of American and Japanese car parts and auto parts. Many Pakistani automobile parts are manufactured by Chinese companies also under very less cost of labor. The technological know-how possessed by the auto parts of Pakistan is a result of their imported technological know-how from abroad.