KARACHI: In a meeting of FPCCI Standing Committee on automotive, various issues pertaining to the engineering sector came under discussion, particularly with respect to automotive industry. The meeting also discussed the issues of Preferential Trade Agreement (PTA) and Free Trade Agreement (FTA) with various countries and their possible effects on industrial sector.
The meeting was held in the Federation House which was presided by Ghazanfar Ali Khan. Tariq Ejaz Chaudhary, Chief Executive Officer (CEO) of the Engineering Development Board (EDB) was the chief guest.
While replying to the queries, Tariq Ejaz stated that the Engineering Development Board is a facilitator of manufacturers/vendors of engineering components, adding that it does not compromise on the quality of the products and works for the safety and security of the consumers.
Tariq Ejaz was critical on manufacturers of four wheelers for not introducing modern technologies with reference to the safety measures.
He also lamented the local car manufacturers/assemblers for not introducing latest model and was confined to outdated models.
He also disclosed that the manufacturers of Japanese giant, Toyota; German’s Pride Volks Wagon and French’s dignity Renault were inclined to make joint ventures investment in Pakistan but mainly due to used Car Policy.
He also spoke about the manufacturing capacity of the four wheelers in Pakistan which are running at under capacity utilization due to which the prices of locally manufactured vehicles not only increases but also the import of new cars. Tahir Ejaz also emphasized on the quality related issues and technological advancement so that we could also exports auto products to other countries besides meeting of local demand.
He is initiating an institute in Karachi which will provided facilities of testing of vehicles and will also work for the ratification of wheelers with Japan.
The meeting was also discussed that under the present circumstances like lack of infrastructure facilities shortage of utilities-electricity, gas etc.-coupled with the law and order situation, the survival of small vendors is at stake.
Ghazanfar Ali Khan told to EDB to support the existing assemblers for setting up a new Greenfield plant and grant the same incentives as offered to the new entrants for Green field at least for one Model and 1per cent Regulatory Duty (RD) changes on steel which hit Auto-Industry. He also requested for immediate amendment in SRO 568 and SRO 1178.
Moreover, the Government of Pakistan should not allow import of auto parts at zero duty otherwise auto-vendors Industry will be closed, he added.
