Vice President of Korangi Association of Trade & Industry (KATI) Mohammad Ghazanfar Ali Khan said that Free Trade Agreement (FTA) with Thailand could cause damage for local Automotive Parts Manufacturing industry. Ghazanfar Ali, who also chairs the standing committee of KATI for Automotive, said this in a meeting with auto part manufacturers.
He said that He said duty concessions under the FTA will supersede the existing tariffs announced by the government under the new auto policy. The lower FTA duties will lead to the rollback of localized parts, shelving of planned investments in the future localization and the loss of revenue to the Federal Board of Revenue. He mentioned that workforce of 2.6 million is employed through this industry and volume of investment is Rs180 billion which pays annual revenue to national exchequer estimated Rs80 billion. He further demanded to the Federal government to don’t include automotive parts and Accessories in this FTA.