Auto sector: Disgruntled at being left out, PAAPAM writes to Nawaz
Wants to be included in drafting new auto policy.
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
LAHORE:
As the industry keenly awaits the new auto policy, the Pakistan Association of Auto Parts and Accessories Manufacturers’ (Paapam) has lamented its absence in a meeting of stakeholders called for January 7, 2015.
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.
As the industry keenly awaits the new auto policy, the Pakistan Association of Auto Parts and Accessories Manufacturers’ (Paapam) has lamented its absence in a meeting of stakeholders called for January 7, 2015.
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.