Table of contents list of acronyms
Chapter 8 PAKISTAN’S TRADE IN THE AUTOMOTIVE SECTOR
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| Chapter 8 PAKISTAN’S TRADE IN THE AUTOMOTIVE SECTOR We have discussed in the previous chapter the level of technology diffusion in the autoparts sector, which consists mostly of indigenous units either in the formal or informal sectors. OEMs, on the other hand, are mostly owned by MNCs and have access to latest technologies and costs of production (at world prices) are dependent more on the extent of economies of scale realised in the production process and/or on the extent of competitive pressures. We have also concluded in the previous chapter that a potential niche where Pakistan could be competitive internationally is in relatively labour-intensive parts manufactured with low to intermediate technology. The objective of this and the subsequent chapter is to focus on prospects for regional trade in the automotive sector, especially with India. The following questions contained in the TOR for Phase III of the study will be focused on What has been the volume and value of imports and exports of Pakistan over the last decade and what is the potential market size What are the factors constraining the growth of exports and how can these be overcome What are the implications of trade with India following the granting of MFN status Is there a potential for forming joint ventures with Indian entrepreneurs. If so, how will these benefit Pakistan’s automotive industry To ensure sustainability of the industry what changes in protection policies are required The Chapter is organised as follows Section 1 gives data on the trade in the automotive sector of Pakistan. Section 2 focuses on factors constraining growth of exports, based particularly on the responses by the sample of vendors. Section 3 contains a list of suggestions made by the respondents for support from the government for increasing exports. Download 0.77 Mb. Share with your friends:
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