In his letter to the prime minister, Paapam Chairman M Siddique Misri said the auto policy was being formulated without consultation with the association, which is a key stakeholder. STOCK IMAGE
The meeting, to be held in Islamabad, has been convened to finalise the auto policy but, will not feature representation from Paapam. The association, formed in 1988, is a member of the Federal of Pakistan Chamber of Commerce and Industry and has a registered membership base of over 278 “tier one” parts manufacturers.
In his letter to the prime minister, Paapam Chairman M Siddique Misri said the auto policy was being formulated without consultation with the association, which is a key stakeholder.
Meanwhile, Misri added that the association has responded to the Competition Commission of Pakistan’s (CCP) report, which was highly critical of the Pakistani auto industry and suggested opening up of imports to increase competition.
Misri said the report was based on “obsolete information”.
“It led to fallacious conclusions and recommendations that could endanger the vast potential of the automobile sector and the three million citizens that are directly and indirectly linked with this industry,” said Misri.
Paapam Senior Vice Chairman Mumshad Ali said the association was not even consulted then by the CCP in preparing the report.
In the report, the CCP had found that existing policies are protecting local players at the expense of consumers. The anti-trust watchdog also recommended the government to withdraw three notorious Statutory Regulatory Orders that give protection to the local industry and restrict entry of new players.
The CCP also showed concerns over the parallel rise in prices by the three players from 2010 to 2012.
It also recommended that the government should not only increase the age limit for imported vehicles to five years from the current three but should also allow open imports. However, Paapam officials stated that in order to rectify the situation, the association had sent a detailed reply and also requested a meeting with the newly-appointed CCP chairperson.
Published in The Express Tribune, January 3rd, 2015.
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Thanks the Anti-Trust Authority CCOP Pakistan for the worst to happen from WTO to PAMA membership companies producing cars neither to JAMA, OICA, ISO, JD Power. The first is the pricing issue for over charging by JAMA member Kit Car Assemblers, not manufacturers. An example where Maruti Indian manufacturer of Suzuki Motor Corporation, Japan information leaked for overcharging by Suzki Motors Corporation to Maruti, resulted suspension of trading in Bombay Stock Exchange. The SECP should investigate this overcharging of local assembled cars as in India, China where regulatory authorities intervened and enforced. CCOP should consider a level playing field under WTO, Quality, Safety, QC standards compliance for enablement of the car for export under World Custom Organisation Pakistan car cannot be exported as it is not safe for passenger safety. The WHO celebrating the decade of Road Safety, may act to declare the PAMA car un-safe for Road Safety. As far as car manufacturing is concerned please visit Consumer Electronic Show, Las Vegas, US, this month. The web site will tell what is today the trend for Car Manufacturing and how Toyota, GM, Mercedes, BMW, Hyundai, Honda is working for Road safety.