Automobile Industry Can Develop Export-Oriented Engineering Sector

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The engineering industry accounts for about 2 per cent of GNP, and 10 per cent of manufacturing value-added. However, the employment level is around 250,000 with investment of Rs. 100 billion. Of the above, the automotive industry and the mechanical equipment sectors contribute to 70 per cent of employment, and about 80 per cent of investment, GNP and value-added.

From a non-existing industry at the time of creation of Pakistan in 1947, our automobile industry is now producing around 50,000 cars and commercial vehicles, 12,000 tractors and over 70,000 motorcycles annually. The local content of the vehicles produced ranges from 40 per cent to 60 per cent in cars and commercial vehicles, over 80 per cent in tractors and around 55 per cent in motorcycles.

Rapid industrialisation mainly aims at achieving …