With no tariffs and protection local Industry cannot grow , as proven by failure of Adam Motors
mistake the owner made was he Àssumed that Pakistan Government would buy the car for government
But its hard as our Parliamentarians love the Mercedez and BMW , the economical Adam motors was not up to their `taste`
What has killed Pakistan`s own industry is simply
Short Cut , mentality I mean why spend time to build a engine when you can get engines shipped from Japan or China etc
Similarly no effort was done to construct important parts for part that envolve engineering
Pakistani auto sector is just a `Assembly Unit`they do not have ability to CREATE something simply they can put two parts together
If the Gov had introduced a policy to outlaw or ban cars over 10 years old this would have forced people to buy more Adam motors or local cars
If we think about it logically
If Pakistan Gov had bought the Jeep by Adam Motors for Police service perhaps it would have offered lifeline of that local company to grow
But again in Pakistan every one looks out for their own personal `fun time`
I mean otherwise we can see how well Pakistan Railways is doing , as long as Salaries are paid on time who cares of the corporation makes money or not
In Industrialized nations the cycle is
Universal Model: The correct Way
step1: Schools and Universities produces talent
step2: Companies hire the best talent in engineering and technical positions
Step3: The company innovate with new fresh Ideas (engines , design, comfort)
Step4: Product is released , Sales are made , people are paid , they pay taxes
Step5: Company stays profitable , and creates better product next release builds legacy
Step6: Locally produced Cars are 20% cheaper them imported cars
Step7: Once established , the car companies enter the engine and vehicles in International races
in order to improve Brand name awareness world wide
Step8: Focus is on quality , maintainability , 5 years labor and parts warranty and company owns
their own licensed mechanic shops to offer monthly vehicle maintenance.
Step9: As company grows , it hires (Marketing workers, HR representatives, Accountants etc )
True "MADE IN PAKISTAN", this model brings quality into a process
Pakistani Model: The Burger Flipper
Step1 : Hardworking trader traded parts shipped from Japan/China has no formal education
Step2 : He sees chance to build shop or company does so , gets people to assemble parts
Step3 : He forms partnership with Japanese companies so he buys cheap rate parts makes his cut
Step4: Pakistan offers trade favors for bringing in foreign cars
Step5: Cheap labor is hired who just put pieces together , manual labor
Step6 : 70% of the revenue is imported out of country , 30% remains in corporation
Step7: No major innovation is done in Pakistan
Step8: For every 1-2 Billion dollar that goes out of Pakistan , Japan donates 2-10 million dollars
back into Pakistani Economy as good will
Step9: After few years, the foreign companies drastically lower their rates and prices to
intentionally kill off Pakistani company , and once that is done rates go back up to recover
loses
This is more or less "Assembled in Pakistan"
