Car imports: ECC to review age limit in next meeting

Minister says Chinese, Koreans interested in setting up manufacturing plants.

KARACHI: Federal Minister for Industries and Production Mir Hazar Khan Bijarani has said the prime minister has withheld the Economic Coordination Committee’s decision which increased the age limit for import of used cars from three to five years.

Prime Minister Yousaf Raza Gilani has referred the matter back to the ECC, which would review it in the next meeting, Bijarani said.

He was speaking on the sidelines of a meeting held at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday.

Responding to a question, he said the government will not keep silent over increases in car prices by local manufacturers, adding the government has various options to reduce prices. He said proposals were coming from Chinese and South Korean manufacturers for setting up car manufacturing plants in the country. “New entrants in the industry will be facilitated.”

Car importers have expressed concern over the government’s move to scrap the decision allowing import of used cars up to five years old. The move was apparently aimed at countering the rise in prices of local cars and providing a better choice to people.

Importers said they have already booked 6,500 cars from Japan, UAE, Thailand and England. One consignment has left Japan carrying 1,500 cars and would reach Karachi on January 10, said All Pakistan Motor Dealers Association Chairman HM Shahzad.

He said the booked cars were worth Rs8 billion and if the government revoked its previous decision the importers would be in deep trouble.

On their part, car manufacturers said the cost of manufacturing has increased over the last few years and as a result they needed to increase prices. Statistics show that car manufacturers have increased prices on 16 to 18 occasions during the almost three-year tenure of the present government.

During the event at the FPCCI, the Federation and the National Productivity Organisation (NPO) discussed a campaign launched earlier for improving industry standards, product quality and productivity. Under the programme, Prime Minister Quality Awards would be given to companies who meet the set criteria.

Offers received for expansion

Minister for Industries and Production Mir Hazar Khan Bijarani said the government wanted to expand Pakistan Steel Mills (PSM) and has already got more than 10 offers from international companies.

“We want to increase PSM production from one million to three million tons and is also seeking to introduce private sector management to overcome management issues.”

He said any decision on PSM expansion would be taken with the consent of all stakeholders. “Last time, we saw the Supreme Court withheld the privatisation of the PSM, so this time we do not want to repeat the history.”

Replying to a question, he said the new industrial policy would likely be approved by parliament in the next three months, adding at present the revised version of the policy draft was under consideration at public and private levels.

Published in The Express Tribune, January 2^nd, 2011.