SMEDA-JICA INDUSTRY SUPPORT PROGRAM (Auto Parts Sector Pakistan)


SMEDA and JICA (Japan International Cooperation Agency) have initiated an Industry Support Program in Pakistan. These two organizations are working together to provide technical assistance to various industrial sectors through Japanese Senior Experts. The Automotive Sector in Pakistan is dominated by the Japanese companies. These companies carry out the assembling operations and are heavily dependent upon the local auto parts vendors for parts supplies. Improving the vendor industry will directly benefit the assemblers in terms of cost, on time delivery and quality. The vendors of the sector are facing a major challenge with the liberalization of economy and phasing out of deletion program. They need to be educated in Capability Building, Application of TQM & JIT techniques, Production & Operations Management and Integrated Problem Solving. It was therefore essential to start an Industry Support Program for assisting the Auto Industry to enhance its competitiveness.

SMEDA has requested JICA for six automotive experts as Senior Volunteers (SVs) to be based at SMEDA. The tenure of each of the SVs will be for one year.


The Automotive Experts work for technical support to Automotive Vendor Industry in Pakistan. Industry Support Cell (ISC) comprises of automotive professionals at Lahore and Karachi. These professionals are working closely with the Japanese Expert(s).

With around 40 years of experience, coupled with pertinent education in respective fields, the experts will transfer their knowledge, expertise and methodology to the local industry on truly voluntary basis. As a part of the program, Japanese expert(s) will be attached with industrial unit(s) for a certain time period.

In the process of technical guidance, the selected units are evaluated thoroughly by the expert(s) and comprehensive advice and guidance is given on improving the levels of productivity, efficiency, quality, cost controls and effective management techniques (based on the needs of each individual unit). Normally, a time period of Nine Weeks is allocated to each individual unit for technical assistance and then after a certain time the same unit is again re-visited to evaluate the changes that take place in light of the guide lines provided earlier.

Significant results have been achieved in following areas:

• Productivity Improvement
• Optimal capacity utilization
• Introducing efficient management techniques
• Cost controls
• Skill up-gradation at middle management level
• Introducing concept of on-job-training
• Awareness of International Quality Standards
• Cultural change by introducing concept of “Continuous Improvement”

It is estimated that around 150 industrial units will get a direct benefit from the program during the stay of SVs in Pakistan in next two years. After the departure of these SVs, the Industry Support Cell at SMEDA with Pakistani professionals will continue to provide these services to the industry. It is anticipated that this program will lead to improvement of Automotive Vendor Industry at various steps of the value chain. These improvements will lead to higher productivity of Pakistani manpower and better product quality for enhancing exports for the Auto sector.

In order to share the benefits of the expertise and knowledge of the Japanese Expert(s), the relevant industrial units are invited to be the part of this program as model unit(s). Upon request, the expert would spend a defined time at the factory and will guide about the improvements that can take place based on the specific needs of unit.

We would also request the concerned trade associations to select their members who are relatively small to medium scale in size, genuinely interested in up-grading their level of operations through the Japanese Experts and are ready to put-in the required time, effort and investment for moving on to a higher level of business operations. 

Please let us know by letter or fax about your willingness to participate in this program so that the name of the nominated unit(s) could be included in the schedule of next phase of the program.

In case if any clarifications required, please do not hesitate to contact the undersigned.

Muhammad Salman Butt
Management Associate
Industry Support Cell-Lahore
msalman@smeda.org.pk
Fayyaz Ahmed Riaz
Deputy General Manager
Industry Support Cell
fayyaz@smeda.org.pk
Hussain Abbas Habibi
Management Associate
Industry Support Cell-Karachi
hussain.habibi@smeda.org.pk