LAHORE: Despite hustle and bustle, the Pakistan Auto Industry Plan (PAIP) 2014-19 could not be formulated so far and the subsequent uncertainty has delayed big investment in auto industry, depriving the industry of healthy growth.
The apathy on the part of the authorities concerned could be gauged from the fact that despite calling a meeting to finalise auto policy on January 7, copy of the draft policy could not been shared with the stakeholders.
According to reports, the current exercise of auto policy formulation had lost its credibility as the government neither appoint CEO of the Engineering Development Board (EDB), nor engaged industry experts to get inputs on future vision for the auto sector.
It is to be note that the post of EDB CEO has been lying vacant for the last 18 months.
Pakistan had a total demand for 245,000 vehicles out of which around 199,000 vehicles were locally produced while the remaining 46,000 were imported as used cars till 2007. However, the volume remained as low as 137,000 vehicles in CY 2013, which is 45 percent lower than the level of 199,000 vehicles achieved in CY 2007.
Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) Chairman M Siddique Misri, in a letter written to the Prime Minister Nawaz Sharif, has raised objections and expressed serious concerns over the unfair process of Auto Policy formulation.
He criticised the government for not maintaining transparency in the preparation of PAIP, despite giving impression to take the industry on board.
Moreover, he stated that PAAPAM has issued a Rejoinder on Competition Commission of Pakistan’s report on the Auto Industry, which is based on un-researched and obsolete information, leading to fallacious conclusions and recommendations, that could endanger the vast potential of the Automobile Sector and the 3 million citizens that are directly & indirectly linked with this industry.
Senior Vice Chairman Mumshad Ali said that the Association wishes to record its protest that the CCoP did not consider it appropriate to consult us in preparing the report on Pakistan Auto Industry.
He said that Competition Commission of Pakistan’s report is geared towards promoting used car traders mafia and total closure of the mother of all industries.
