LAHORE, Oct 22: The Pakistan Association of Automotive Parts and Accessories Manufacturers has suggested that instead of abolishing negative trade list by the year end, phasing out should be linked to proportionate measures by India towards reduction of non-tariff barriers (NTBs).

“In case India fails to remove the trade barriers, negative list should not be abolished,” said the chairman of the association Munir Bana on Monday.

He said that the sensitive list be maintained for at least next 10 years, before any reduction in tariff lines could be considered.

“There is no clarity on the issue of phasing out of negative list.

The cabinet had clearly decided that the negative list would not be phased out by Dec 31 this year, unless India removes all NTB’s to our satisfaction.

Secondly, Pakistan’s auto industry is not prepared for phasing out negative list, as our government has not carried out administrative and organisational changes in their internal systems, for gearing up to the onslaught of Indian products.

The association wants manufacturing based trade with India and does not want Pakistan to become a market for Indian finished goods, he said.

The association, he said, has already made it clear to the quarters concerned that it would always welcome manufacturing and technology based investments from India.

All trade openings should be two ways rather than one way.

End of negative list would be a national crime before providing a level-playing field to Pakistani manufacturers who are hit by prolonged electricity shutdowns, gas interruptions and skyrocketing energy tariffs.

The Ministry of Industries had admitted that Pakistan’s domestic industry was in a gross comparative disadvantage position in terms of energy and access to credit.

“Numerous industrial zones in India offer concessions to promote the industry while in Pakistan there are frequent and prolonged energy outages, and production capacities remain unutilised across the board increasing the production costs for a majority of those SMEs which do not have resources to set up captive plants,” said Mr Bana.

Paapam vice-chairman Usman Malik said that India should not be allowed to use Pakistan as a dumping ground for its cheap and substandard goods.

The auto industry was neither consulted nor taken into the confidence on the attached issues agreed with Commerce Secretary of India.

He suggested that all auto parts and accessories be included in the negative list of trade with India, as imports from the neighbouring country would badly affect the local industry.

“Trade liberalisation with India is a sensitive issue and it involves a number of aspects. Therefore, before finalising the negative list, the government should thoroughly check all negative implications it can have on different industries in Pakistan.”

In its suggestions sent to the Ministry of Commerce, the association has already made it clear that if restriction on import of auto items is lifted, business of local manufactures of auto parts would be adversely affected, he added.