Minister for Industries and Production, Manzoor Ahmad Wattoo said on Thursday that car manufacturers are involved in black marketing and the National Assembly's Standing Committee has taken serious note of this situation. After the meeting, talking to media, he said that for the first time, the Ministry of Industries and Production presented auto industry to the NA Standing Committee to further strengthen the parliament and its institutions.
The minister said that the committee expressed reservations over non-availability of cars, the 'on money', which he termed as black marketing, and prices of Suzuki cars are on the higher side. However, the minister said that except Corolla GLI and XLI all other types of cars were available in the market for sale. Due to shortage of GLI and XLI, the 'on money' (black marketing) culture was also developed in the market.
Defects in locally manufactured cars were also identified and discussed in detail during the meeting and the manufacturers were strictly directed to remove the manufacturing defects. The minister told journalists that during the meeting it was decided that local auto parts production targets should be ensured at any cost and Suzuki cars prices should be brought down at par with Indian cars.
Pakistan Machine Tool Factory (PMTF) on Thursday informed the government that it was ready to make auto gearboxes, which would help the government save foreign exchange being spent on its imports.
According to the minister, the government was planning to review the auto industry policy and recommendations of the NA Standing Committee would be accommodated in the new policy. About reduction in prices of Suzuki cars, the minister said that the committee discussed quality of cars not its prices.
At present, all gearboxes were imported and fitted in locally manufactured cars, Manzoor Wattoo told a press briefing after National Assembly Standing Committee on Auto Industry here. Local production of gearboxes would help in reduction of car prices in the market, the minister added.
About the tractor industry, the minister said it is doing well and its prices were lower than Indian tractors. However, Millat Tractor 385 was unable to meet its demand. The manufacturer informed the NA Standing Committee that its supply would improve in September 2009. The minister said that there was no duty on import of tractor but the local made tractors were cheaper than imported that was why people prefer to purchase locally-made tractors.
The minister said the committee also expressed some reservations over distribution of imported urea in the market. For the ongoing Kharif season, the minister said that the country needed three million tons urea, in which 2.5 million tons was local production and only 0.5 million tons demand met through imports. In the ongoing season the urea was required for the production of cotton, sugarcane, maize and other small crops.
The government decided to import 0.8 million tons and made 0.3 million tons urea as strategic reserve. Till July 31, the minister claimed that about 0.5 million tons urea fertiliser would be imported and distributed among the farmers through registered dealers. National Fertiliser Company (NFC) had established 600 dealers and everyone provided equal bag of urea fertiliser. He claimed that there was no shortage of urea in the country.
The provincial governments were involved and they were properly checking the distribution of urea fertiliser in their respective provinces. There was also no condition that a farmer has to purchase a single bag of DAP with two bag of urea fertilisers. Every farmer was free to purchase urea fertiliser without any restriction. Replying to a question, he said that dealerships of those dealers were cancelled and cases have been registered against them who were involved in black marketing.
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