ISLAMABAD: Prime Minister Shehbaz Sharif on Friday urged automakers to start local manufacturing of vehicles and exporting them to contribute to the country’s development, Sharif’s office said, amid Pakistan’s efforts to reduce import bills.

Sharif made the remarks during his meeting with a delegation of Pakistani automakers, comprising Toyota Pakistan Chief Executive Officer Ali Jamali, representative of the auto parts industry Amir Allahwala and others.

Pakistan, which has been facing low foreign exchange reserves, currency devaluation and high inflation, averted a sovereign default last year, thanks to a $3 billion International Monetary Fund (IMF) program.

The South Asian country is currently making desperate efforts to cut its import bills, increase exports and to boost foreign direct investment to address its macroeconomic crisis.

“Auto sector should manufacture vehicles locally in Pakistan,” Sharif said. “Auto sector should export a substantial part of its products and play its role in the country’s development.”

He urged the Pakistani automakers to become a part of the global value chain by exporting their products.

Pakistan last year averted a default after it secured a $3 billion International Monetary Fund (IMF) loan program. Islamabad says it is seeking a new loan over at least three years to help achieve macroeconomic stability and execute long-overdue reforms.

The $350 billion South Asian economy faces a chronic balance of payments crisis, with nearly $24 billion to repay in debt and interest over the next fiscal year — three-time more than its central bank’s foreign currency reserves.

Pakistan’s finance ministry expects the economy to grow by 2.6 percent in the fiscal year ending in June, while average inflation for the year is projected to stand at 24 percent, down from 29.2 percent the previous fiscal year.