Afghan transit trade needs to be rightly executed for local spare parts business; diversification in filter making a must
Interview with Engineer M. A. Jabbar – CEO, Qaim Automotive Manufacturing (Pvt) Ltd
PAGE: TELL ME SOMETHING ABOUT YOURSELF AND YOUR COMPANY, PLEASE:
ENGINEER M. A. JABBAR: Our company M/s Qaim Automotive Manufacturing (Private) Limited, is incorporated company under the provisions of Company Ordinance 1984 with provided Memorandum and Articles of Association giving expressed objectives of the company to setup industrial undertaking to manufacture all kinds of automotive parts, products and to do all other acts which are necessary for establishment and operation of industrial unit.
Qaim Automotive manufactures filters in major for automobiles and at general for customized needs to include also power, industrial application. The filtration covers liquid and gas filtration for the needs of automobile and extends to ON/OFF road transportation machinery. The expected least contaminated use of air, oil, fuel and other liquids as outcome of filtration is fundamental to the requirement of manufacturing of filters for the intended use.
With filtration continuing to be main tool and equipment to mitigate the evils of pollution is itself promising for further developments of filters for more applications and needs. As per requirement of efficiencies for use and eventual disposal of the medias being filtered for remains inclusive objective in manufacturing of filters.
The coal-fired power plants, cement plants, crushing plants, marble processing industry, stone development units, mining and quarry, air purification and other environmental protections and needs thereof as per national environment quality standards together are promising a required business increase and diversification in filter manufacturing, hence a reliance on such trend is also fundamental to ascertaining future growth in this field of filtration. Inevitable expansions in the scope of filtration and in the requirements thereof from small industry, house and to for pharma industry exist as promised reasons for growth in manufacturing.
With my diversified engineering background, the subject of production engineering is put to use in manufacturing of filters in our company, wherein the backup of knowledge always eases the process of thinking and considering a meaningful approach and solution for reverse engineering based in major manufacturing of filters.
This process of thinking provides changes to be even better than originating from others, whose origin products have been made subject of developing similar products by our company. Other than this, the required and given parameter basis for manufacturing also act as innovated process of offering filtration solution for need based applications. This provides chance of technical discussion wherein cross border exchanges of information with regard to type of material, efficiencies thereof, pressure drop, cascaded effect of loading the contaminated media for filtration together gives a chance of learning from interactive discussions helping to fix the specifications for manufacturing of filters. In developing economy such uptakes are encouraging for improvements and quality production and above to all come up to expectations of end user, which remains the key to the success.
Consolidating the progress of development of filters, 19th Century saw the benchmark consideration for initiating production of filters, which has gone into improved situations and remains to be promised for: "improvements are unending". The foreign particulates from outside and developed from within the equipment and machinery under use have now placed dual charge on filtration to not only capture the foreign particles for prolonging the life of equipment and machinery but as well as capture the developed particulars from and within the operating system of equipment and machinery.
Therefore, the development in filtration has become a subject wherein filtration and separation, society thereof, knowledge based alliance thereof continues to work and make R&D to suggest the best one can expect little short of absolute filtration but where deem necessary, the precision requirements also call for such almost absolute needs for absolute filtration.
PAGE: IS AFGHAN TRANSIT TRADE (ATT) SEVERELY AFFECTING THE BUSINESS OF LOCAL MANUFACTURERS OF SPARE PARTS? GIVE YOUR VIEWS PLEASE:
ENGINEER M. A. JABBAR: The menace of connived and managed back imports from Afghanistan is not a new history. The consumption for Pakistan market has always remained part supply or full supply of such undocumented imports from Afghanistan.
The spare parts are no exception in this regime of not legal imports and also constitutes in major such back imports from Afghanistan without any legal channel requirements otherwise should apply on imports.
The word illegal imports can fairly apply to such goods imported from Afghanistan but consumed in Pakistan without any documentation. The pattern of such backward flow of spare parts depends on the pattern of demand consumptions in our market and as well as low volume high cost spare parts remain attractive regime for such back flow from Afghanistan.
The vendor industry which is providing spare parts or parts for manufacturing and assembly of vehicles of many types in Pakistan produces parts as to the satisfaction of original equipment manufacturers. Thus, technically speaking or based on differences amongst genuine, OEM and aftermarket parts, one can say that our manufacturers produce genuine parts, which they can offer for aftermarket as OEM without logo of vehicle manufacturer and as well as can offer similar parts of same quality for after market without embossing the logos.
This satisfaction of car manufacturers and assemblers in Pakistan, which primarily is facilitated by tariff based system. Meaning by that government is providing tariff level on imports of completely built units, against which vehicles are being assembled in Pakistan through integrating the domestic manufactured parts. Difference in import tariffs on raw materials for manufacturing parts for car manufacturers serve the economic reason to work with TBS based system for indigenization. This protected concept is being circumvented through back imports without documentation.
Illegal imports from Afghanistan giving price preferred margin of unpaid duty/non documented imports of spare parts from Afghanistan provides huge space to after-market sales of spare parts of over Rs100 billion. This situation has frozen the option of managing a share of locally manufactured spare parts in aftermarket or replacement market producing quality parts.
The scale of economy is restricted for domestic industry with overwhelmed reliance on domestic vehicle manufacturers. The arresting of increase in domestic production of parts due to backward flow of parts from Afghanistan imported for actual consumption in Pakistan also remains non resolute evil in the field.
The trade of illegal imports earlier from Afghanistan was a chance based trade in which the imports for Afghanistan were more on a guess work exported back without documentation to Pakistan with assured making margins for preferred sales, however, presently this is highly organized sales for aftermarket of spare parts in Pakistan. The anticipated requirements are well tabulated against which imports from Afghanistan of spare parts takes place with promised re-entry in Pakistan.
There have been innumerous reports with fairly well thought over and collected figures, which definitely speaks of adverse impact on our domestic manufacturing including on spare parts manufacturing in Pakistan for vehicles and aftermarket.
In simple the tax paid goods or tax paid manufactured goods cannot cost compete with un-taxed back entered goods from Afghanistan for consumption in Pakistan market. The concept of filer and non filer eventually considered as an approach to direct documentation of economy has not worked. It has or otherwise doing good has further created problems of security in handling cash situations, which otherwise earlier even in non filer account of business transactions was originating through secured banking channels.
We instead of making real time corrections are always engaged in finding the on/about solutions, which instead of promoting economy, sometimes suffocates and creates problems of law and order.
In conclusiveness of the whole issue, land-locked country in terms of international references may need our support to allow imports of goods to pass through our country, but it should also consider the win-win situation wherein we allow imports of goods to the level of requirements and consumption of the country we are facilitating our land while preserving and protecting our own interest to include promoting domestic industry, encouraging import substitutions and moving to self-reliance. If the situation of not performing real monitoring of misuse of ATT sustains, then we cannot manage performing required national objective to strengthen our domestic industry.
The dismal performance of domestic industry will continue and it is likely that in time to come we will be importing more and exporting less to sustain the syndrome of taking money from donors for making the figure numbers balance sheets in specific to manage percentage of GDP as deficits etc asked by the donors as our principle and foremost objectives.
The macroeconomic stability should not affect our micro economic requirements, which provides employments, services and above to all, the spirit to consider domestic investment in value additions as the reason based on available business enabling and profit-taking environment.
The consumption volumes for domestic needs through and by facilitating Afghan trade are fairly large as against domestic produced spare parts, whose consumption in aftermarket is limited due to some of the reasons aforementioned and discussed.
The present interceptions in the name of checking smuggling on random basis needs to be changed to a national anti-smuggling action plan in the interest of our domestic economy? The way we are working on economic terrorism, in specific hunt for those considered to be financing outlaws should extend to this area, which is destroying factor for our economic interest, in specific impeding creation of production physical assets to generate economy, employment, taxes, spillover for exportable surpluses and without any doubt for affecting the pulling out poverty with passage of time on sustainable basis with passage of time domestic industry is performing.
Eliminating the available lower cost competing similar products rebound from Afghanistan for actual consumption of Pakistan market facilitated by Afghan Transit Trade needs to be executed.
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The opinions expressed in this article are the author's own and do not necessarily reflect the viewpoint or stance of SDPI.