The issue was raised in a meeting between a two-member delegation of Yamaha Japan and Federal Secretary for Industries Aziz Ahmed Bilour here on Thursday.
Presenting its proposals, the delegation said Yamaha being a new entrant needed some additional benefits to survive in the competitive market of Pakistan. It asked that the motorcycle manufacturer should be allowed import of parts at a reduced duty of 5%.
The Ministry of Industries, however, did not agree to the demand, arguing that import duty had already been brought down from 15% to 10%, which is acceptable to all players of the industry.
The ministry agreed that this subject fell exclusively under its purview and no other ministry had control over it.
Industries Secretary Aziz Ahmed Bilour said the ministry was keen to attract new investors to the country, but not at the cost of existing industry. The ministry would take every possible measure to safeguard the interest of motorcycle and vendor industry, which employs thousands of workers, he said.
Bilour asked the delegation to come up with new proposals and refrain from hampering the interest of domestic manufacturers.
Published in The Express Tribune, June 15th, 2012.
COMMENTS (2)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
I think the whole issue is Yamaha previosly left the joint venture with Dawood Yamaha Limited, which still make good old Yamaha. The Yamaha Japan wants to enter the market again this time with its own manfacturing and bringing in new techonolgy, there is a tax and duty subcidy for new investors in place, current old bike making mafia is trying to stop new technology and sleek models hitting the market and making them to compete. Hope Yamaha get back to Pakistan with latest and efficient models to beat current mafia ripping off people with 50 years old motorcycles and scooters!
I think the government response is good enough. Instead of major concessions, Yamaha should do something else to enter the market with new and attractive models in economical prices. They would certainly get success!