ISLAMABAD: “Increased input costs are putting immense pressure on the auto industry of the country, while research and development on steel is playing a major role in increased cost of production,” said Former PAAPAM chairman Aamir Allawala on Wednesday. “RD is usually imposed on imported products and raw materials that are available indigenously. Pakistan is not producing auto grade and tensile steel but still RD is imposed on the sector,” he said, adding that the rupee depreciation had also played a key role in increased cost of production as dollar has appreciated by around seven rupees in a year. “Government should ensure predictable and transparent policies as only transparent and predictable policies can motivate manufacturers to invest more, increase capacity and attract new entrants,” Aamir said, adding that recent retraction on misuse of imported cars policy will hurt the industry’s sentiments and give a negative message to new entrants. “One imported used car deprives local industry of Rs300,000, and last year only around 80,000 cars were imported causing a loss of around Rs24 billion,” Aamir said. He added that auto industry was employing around 2.5 million labourers directly and indirectly. It has a lot more untapped potential which is linked to predictable and transparent policies. He said, “The industry needs support from the government in terms of transparent and consistent policies to regain its lost status both at the front of utilisation and production level,” Aamir said. He said that for any country, auto industry served as a launch pad for economic growth. “It can play a similar role in Pakistan, provided that the government ensures a long term predictable policy and environment,” he concluded. Published in Daily Times, February 22nd 2018.