Pakistani auto part makers call for tax cuts on local vehicles to boost jobs, manufacturing

A man walks past a Suzuki outlet, displaying cars in Karachi, Pakistan, July 27, 2022. (REUTERS/File)
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Updated 27 October 2023
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Pakistani auto part makers call for tax cuts on local vehicles to boost jobs, manufacturing

  • Stakeholders say taxes on locally produced cars can go up to 43 percent, hampering auto industry’s growth
  • Pakistani firms are making several low- and high-tech auto components, seek to meet bigger localization target

KARACHI: Pakistani auto parts and accessories manufacturers urged the government on Friday to reduce taxes on domestically produced vehicles, saying it would help stimulate manufacturing activities and create more job opportunities in the sector.

The appeal was made the chairman of Pakistan Association of Automotive Parts & Accessories Manufacturers Abdul Rehman Aizaz at the inauguration ceremony of the Pakistan Auto Show 2023.

He said nearly 300 companies in Pakistan were producing thousands of components for car manufacturers in the country, providing livelihood to a sizable number of families and making significant contribution to the overall industrial output.

“The government should realize that its treatment of the auto industry as a cash cow by burdening it with taxes ranging between 37 and 43 percent per locally produced car is hampering the growth of the auto industry,” he said.

“Majority of low- and certain hi-tech components of this segment are made in Pakistan,” he continued.

However, he noted this did not mean the country’s localization goal had been met like it had happened with the motorcycle and tractor manufacturing, adding this owed to various reasons that included low volumes and reluctance of international companies to fully transfer the technology.

Aizaz said Pakistan’s per capita car consumption was quite low even when compared with regional underdeveloped countries.

Earlier, the auto show convener, Zain Shariq, said the event was themed around “Synergizing Pakistan” and was organized to highlight the country’s hidden assets in terms of value addition and manufacturing.

He noted that local parts manufacturers were not just confined to auto parts since they were also producing vital industrial components for the defense, aviation and healthcare sectors.

Over 150 companies, including a number of Chinese and Iranian automotive parts manufacturers, are participating in the auto show which will continue until October 29.


In Peshawar, 76-year-old artist struggles to keep near-extinct Mughal wax art alive

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In Peshawar, 76-year-old artist struggles to keep near-extinct Mughal wax art alive

  • Craft involves intricate process using heated wax, oil, pigments, limestone to create textured, miniature artworks
  • Riaz Ahmad, who has trained his son in wax art, says he hopes to train more people to preserve traditional craft 

PESHAWAR: Riaz Ahmad, 76, stirs wax in a small plastic can with a long chopstick, takes it out on the palm of his left hand and adds natural color before drawing designs on a piece of cloth.

Surrounded by several such pieces of black cloth with unique art, Ahmad strives every passing day to keep the 500-year-old, Mughal-era wax art alive at his home near the Lahori Gate in the northwestern Pakistani city of Peshawar.

Ahmad comes from a well-known family of wax artists who were based in Shillong and Darjeeling in present-day India and had migrated to Peshawar during the 1947 partition of the sub-continent.

His work remains rooted in tradition, faithfully repeating patterns passed down through generations and winning Ahmad several awards both at home and abroad in recognition of his dedication.

“I have been making the same Mughal era designs that my forefathers used to make,” he told Arab News last week.

 

“I went to India in 2004, where I received the UNESCO Seal of Excellence [for Handicrafts] award... On 23 March, 2012, the Government of Pakistan awarded me the Tamgha-i-Imtiaz.”

The near-extinct traditional craft, which is believed to have originated in Central Asia and refined under the Mughal patronage, particularly in Peshawar, involves an intricate process using heated wax, linseed oil, powdered pigments, and limestone to create detailed, textured and often colorful miniature artworks by hand.

Ahmad learnt wax art from his father, Miran Bakhsh, nearly six decades ago.

“My parents used to do this work in Shillong and Darjeeling [in present-day India]. They had a shop there, and after the Partition, they migrated to Peshawar, Pakistan,” he said. “When they came here, they started doing the same work.”

A basic piece of his work costs around Rs3,000 ($10.7). A larger piece made on order can fetch between Rs5,000 and Rs15,000 ($17-$53), but such orders are rare.

“Wax and colors have become expensive. When I sell a piece for Rs3,000, around Rs1,000 goes into expenses, and Rs2,000 is my daily wage,” Ahmad said.

But the 76-year-old worries more about the future of the art form, which he insists cannot be learned quickly and requires “love and dedication.”

“Some people say they want to come, some from Karachi and some from Lahore, but it becomes difficult for me to go there or for them to come here,” he said.

Most wax artists in Peshawar have abandoned the art due to a lack of institutional support, according to Ahmad, who relies primarily on exhibitions to earn a living.

“The reason [for the decline of this art form] is that the government does not pay attention. They are caught in their own conflicts, and the culture is suffering,” Ahmad said.

“Other artists have left this art. Some are selling rice and some are driving rickshaws,” he added. “I have been doing this work inside my house. If there is any event, we go there and sell our art.”

Saad Bin Awais, a spokesperson for the Khyber Pakhtunkhwa Culture and Tourism Authority (KPCTA), said the government has engaged artisans in several projects. He said some of these projects have come to an end while others are ongoing.

“Riaz Ahmad is the only wax artist in Khyber Pakhtunkhwa and the authority is serious about facilitating him,” he said, adding that the KPCTA facilitates Ahmad’s participation in exhibitions across the country to showcase his art.

“We have also been collecting data of artists in Khyber Pakhtunkhwa for an upcoming project to facilitate them in any way possible.”

Ahmad has trained his son, Fayyaz, in wax art who now practices it in Islamabad. The septuagenarian says he wishes to train more people to preserve the dying art form.

“I cannot leave this work,” he said. “I will continue this art even though my hands shake.”