Auto policy far from perfect, says FPCCI

Though policy woos new players, it seems difficult to implement

Ppi March 29, 2016


The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has said that the recently announced Automotive Development Policy 2016-21 is encouraging but far from perfect.

“The policy unveiled after a delay of three years encourages new manufacturers to enter the market while promoting latest technologies but it seems difficult in the current scenario,” commented Abdul Rauf Alam, FPCCI president, in a statement on Tuesday.

Auto policy approved, door wide open for new entrant

He pointed out that Pakistan continued to use substandard petrol - RON 87 - for the past 20 years while the rest of the world, except for Somalia, had switched to RON 92, RON 94, etc, which were not only environment-friendly but also saved the cost of vehicle repair.

He said petrol consumption in Pakistan stood around 17,000 tons per day, of which almost 55% was consumed by the motorcyclists who deserved better-quality fuel suitable for the environment.

“Continued import of substandard fuel has pushed international suppliers away from the Pakistani market, leaving the government dependent on a few suppliers with no competition,” he noted.

The FPCCI president suggested that the oil industry should invest in upgrading technology, enhancing the storage capacity and importing quality fuel to save cost for the people and industry, which was already facing losses due to the growing share of substandard lubricants.

He asked the government to advance soft loans to oil refineries that had been unable to bear the cost of processing quality fuel while rejecting the proposal for allowing marketing of different qualities of petrol as it would lead to adulteration.

A promising auto policy

“Reduction in the share of substandard lubricants and introduction of quality fuel will result in renewed interest of foreign investors in the Pakistani market,” he said, while pointing out that some companies were making cars and motorcycles according to the Euro fuel specifications while many businessmen were importing latest cars but consumers were forced to buy low-quality petrol.

He said though quality fuel was a bit costly, the plunge in international oil prices had made it viable for the common people without which quality of locally manufactured cars may remain questionable. 

Published in The Express Tribune, March 30th,  2016.

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Reader | 5 years ago | Reply FPCCI is part of car manufacturing cartel which is selling scarp to Pakistanis for last 20 years.
Fart | 5 years ago | Reply Very enlightening from the honorable office of FPCCI about Research Octane Number, the higher the number the better thrust, least noise, hence fart free. PAMA and FPCCI are similar fart RON bearers. Per API American Petroleum Instiute reccomendations and SAE Society of Automotive Engineers which are all fart free ingredients of FPCCI RON. Dual Cam engine, dual turbo exhaust sound like big fart to indicate the quality of engine. These tenets are not offered on API or SAE which gives a clear fart blow and big thrust of engine for zero emission standards reccomended by SAE. Thanks for FPCCI for this super invention.
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