Tug-of-war: Gilani, ECC at odds over used car imports

Key ministers question PM's arbitrary decision to reverse the EC decision to allow imports of five-year-old used...

ISLAMABAD: Prime Minister Yousaf Raza Gilani is said to be facing a sort of a revolt after nearly two dozens ministers in the powerful Economic Coordination Committee (ECC) of the cabinet challenged his decision to reverse the ECC move to allow the import of five-year-old used cars.

The committee, which is led by Finance Minister Dr Hafeez Sheikh, is learnt to have conveyed to the prime minister after a meeting on January 13 that the ECC was a “competent forum for taking such important decisions”. They observed that the decision should not have been reversed unilaterally because it was taken on November 11 last year after a thorough discussion over rationalising car prices. In a gesture of defiance, ECC chairman Dr Sheikh has asked the ministries of commerce and industries to bring the issue of rationalising car prices once again before the committee in its next meeting.

According to official documents available with The Express Tribune, the executive order issued by Nargis Sethi, former principal secretary to the prime minister, had come as a shock to all ECC members and the finance minister was said to have felt embarrassment after coming to know that sustained efforts to reduce prices of locally manufactured cars had finally met a sorry end.

Interestingly, car manufacturers, instead of reducing the prices of their vehicles, had taken prices to a level never before seen.

The ministry of industries and production, too, had expressed its helplessness in its effort to make the mighty car makers fall in line.

Sources said that as soon as the decision to allow imports of five-year-old used cars was published in the media, local car manufacturers had started lobbying at the highest levels. They were not disappointed, sources said.

A notification was issued on the instructions of the prime minister.

In the previous ECC meeting, it was pointed out that the commerce ministry had halted implementation on its decision through an SRO which was issued on December 30 last year, saying Premier Gilani had been “pleased to desire to review the matter and to withhold the implementation in respect of ECC decision regarding increase in the age limit of the five-year-old used cars”.

The sources said the commerce ministry had also sent a reference to the ECC on December 28 and tried to justify the prime minister’s decision, saying: “The prime minister may give such directions without reference to the cabinet”. But, source said, ECC members did not agree with the ministry’s interpretation of rules about powers of the prime minister.

Ministers observed that “this decision was taken after detailed deliberations spanning over six months, therefore, decision taken by ECC should have not been withheld as ECC was a competent forum”.

Published in The Express Tribune, January 24^th,  2011.