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TABLE 2.12: ESTIMATED VALUE ADDED BY THE AUTOMOTIVE SECTOR, 2009-10
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- TOTAL 108,015 ($1.3 billion) Total Value Added in Manufacturing 2,259,400 % Share of Manufacturing
- 28 Employment
| TABLE 2.12: ESTIMATED VALUE ADDED BY THE AUTOMOTIVE SECTOR, 2009-10 Value Added to Value of Production Ratio Value of Sales (Rs in Million) Value Added (Rs in Million) Motor Cars (0.277) 120,843 33,474 Motor Cycles & Rickshaws (0.285) 57,848 16,486 Buses/Trucks (0.176) 16,979 2,988 Tractors (0.247) 38,157 9,425 Autoparts (0.272) 167,802 45,642 TOTAL 108,015 ($1.3 billion) Total Value Added in Manufacturing 2,259,400 % Share of Manufacturing 4.8% % of GDP 0.7% Sources: Author’s Calculation using numbers from PAMA, EDB, PAAPAM, SBP and CMI (sources are given in detail in Table 2.7). * Adjusted downward by 1.7% points in relation to the CMI 2005-06 data. 28 Employment Employment data is directly available for members of PAMA and for some members of PAAPAM. On the basis of labour productivity estimates for these units, sub-sectoral estimates of employment have been generated. A downward adjustment of 20 percent has been made to allow for higher labour-intensity in small-scale/informal units, especially in the auto parts sub- sector. The resulting estimates for employment by the sector are given in Table 2.13. Bulk of the employment, 89 percent, is in the production of auto parts. The remainder, 11 percent, is in the assemblers, with motorcycles being the largest sub-sector. The estimated employment is very close to the estimate of 215,000 given in the TOR provided for the study by IGC. It appears that the automotive sector accounts for about 4 percent of the total employment in the manufacturing sector. Revenue The automotive sector is one of the largest contributors to revenue in Pakistan. A large part of the revenue accrues at the import stage. As shown in Table 2.14, customs duties and sales taxon imports by the sector yielded Rs 49 billion in 2009-10. In addition, tax provisions for corporate income tax made by the auto companies are estimated at close to Rs 9 billion. There is also a withholding tax which is collected at the point of registration of vehicles, with revenue of above Rs 4 billion. The combined revenue collection from the sector of FBR taxes is Rs 62 billion in 2009- 10. This is equivalent to about 5 percent of total FBR revenues. With this contribution, the automotive sector emerges as the third largest sector after POL products and telecommunications. Download 0.77 Mb. Share with your friends:
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