Removal of PAAPAM's SG: Infighting reported among auto-part manufacturers

After a standoff between PAMA and PAAPAM on auto sector-related SROs, infighting has been reported within the auto-part manufactures, after removal of the PAAPAM's Secretary General (SG) Muhammad Arshad.
Well-informed sources told Business Recorder that PAAPAM's Lahore and Karachi groups have developed differences with regard to business relationship with auto assemblers. The Lahore Group argues that the three Japanese auto companies give preference to Karachi-based auto parts manufactures for supply of local parts which is "discriminatory" and which became the root cause of serious differences between the incumbent Chairman PAAPAM and PAMA. These internal differences have landed in Engineering Development Board (EDB) in the shape of a document and was discussed at an official meeting.
Chairman PAAPAM, Capt. Muhammad Akram(retired) in a letter to Chairman EDB, Board, Almas Hyder hurled accusations against the three big Japanese car companies, which were out rightly rejected by PAMA, saying that the forum is being used by an individual who does not understand the mechanics of auto sector.
The Karachi-based PAAPAM members are of the view that they are not aware of any controversial letter written by the incumbent Chairman on behalf of the Association.
The sources said Chairman PAAPAM also wrote a letter to the Prime Minister, requesting him to allow auto parts manufactures to make ventilators meant to treat Pakistani Coronavirus patients.
The Association allegedly released about Rs 10 million to nine non-member organizations for this purpose which shocked the Karachi-based PAAPAM members, the sources continued.
When contacted Chairman PAAPAM said that an amount of Rs 5 million has been earmarked for this project, of which Rs 3.5 million has been disbursed to three of four companies as the remaining companies spent funds on their own. He was of the view that initially the Association will give 2000 ventilators to the government free of cost. He said, 8000 ventilators would be sold in the local market while the rest will be exported.
Meanwhile, a letter has been received in Directorate General of Trade Organisations (DGTO) written by PAAPAM's removed Secretary General Mohammad Arshad in which he states that he has observed that the affairs of the Association are not being run in accordance with the provisions of Trade Organisations Act, 2013 and Section 100 (c) of the Income Tax Ordinance 2001. The funds of the Association which are around Rs 70 million are being doled out to friends of incumbent managing committee.
"I have tried my best to convince incumbent managing committee for limiting its activities to the extent mentioned in the Memorandum and Articles of Association but in vain. A number of member companies have also supported my stance," said, Arshad in his letter.