Japan International Cooperation Agency (JICA) under “The Project for Technical Support to Auto Parts Manufacturing Industry” has agreed with Small and Medium Enterprises Development Authority (SMEDA) for a technical assistance for enhancement of auto parts manufacturing industry in Pakistan.
The agreement was signed here Thursday between Mitsuyoshi Kawasaki, Chief Representative of JICA and Muhammad Alamgir Chaudhry, CEO of SMEDA, Mukhtar Ahmad, Joint Secretary, Ministry of Industries and Production, and Syed Mujtaba Hussain, Joint Secretary, Economic Affairs Division (EAD). The Project is aimed to improve the quality and productivity of auto parts through the technical support by Japanese experts, which leads to the competitiveness of auto parts suppliers, will be strengthened, a statement of JICA issued here said.
The duration of the Project is expected four (4) years from April 2015, and target areas are Lahore and Karachi. Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) is also involved as an important partner of the Project.
Auto sector is one of the fastest growing sectors in Pakistan and it contributes towards the nation’s economy in the form of technology transfer, employment and revenue generation.
Local vendors deem to play an important role in the growth of auto industry as they bear the responsibility of producing auto parts and sub-assemblies according to the bench mark set by the respective Original Equipment Manufacturers (OEMs).
On the other hand, local auto parts manufacturing industry is still in the process of development in terms of competitiveness, quality, cost and flexibility of manufacturing procedures.
Pakistan has not been able to derive maximum benefits in terms of technical know-how, production technology and quality control in order to upgrade the vendor base of auto sector.
For the foregoing reason, SMEDA requested Government of Japan for initiating a long term technical support of Japanese way of improving productivity and quality.
SMEDA aims to broaden the scope of productivity improvement activities across the value chain of auto sector in the development of the vendor base across the country.
Mr. Kawasaki while commenting on the significance of the project said, “I am very confident that this new project will support to achieve higher results in auto part industry by ensuring implementation of the plan of actions, efficient use of existing resources and building trustful services delivery”.