Reduction in car prices: MoIP surprised at Prime Minister's strict directives

The Ministry of Industries and Production (MoIP) has been reportedly surprised at the strict directives of Prime Minister Yousaf Raza Gilani regarding reduction in car prices, as car manufacturers have publicly refused to bow down to such overt pressure, sources close to Industries Secretary told Business Recorder.
The Industries Ministry had assigned this task to the Engineering Development Board (EDB), headed by a former Federal Secretary, Asad Elahi, but so far there has not been any positive outcome of the deliberations between the Board and the car manufacturers.
Asad, who is understood to have invoked 'Multan grid', the Prime Minister's constituency, tendered his resignation several months ago which is yet to be accepted by the government. "Car manufacturers are of the view that they would not reduce prices until government slashes existing taxes," sources added. The ECC in its meeting on January 16, 2010 had directed the Industries Ministry to take steps to bring down car prices, but it used different excuses to put the issue on ice.
When this issue came under discussion in the ECC meeting on March 30, 2010, the Minister for Industries and Production, Hazar Khan Bijarani, informed the ECC that he had held meetings with the heads of cars/motor cycles manufacturers and urged them to lower prices. He said he hoped that a doable proposal would be acceptable to all parties soon.
The ECC was also informed that the car manufacturers had raised prices of automobiles on three occasions after announcement of 2009-10 budget. Sources said that the ECC also observed that a clear message should be given to the manufacturers of automobiles that if the prices were not brought down then the government would be compelled to allow import of second-hand cars to facilitate the common man.
After detailed discussion, Prime Minister Gilani directed the Minister for Industries to again hold talks with the manufacturers of automobiles who must be given a clear message to lower prices of their products, failing which the government would allow import of secondhand cars to facilitate the common man, sources added.
According to sources, the Prime Minister also directed that a decision in this case should be taken well before announcement of the forthcoming budget. This strict directive indicates that the Industries Ministry is among those ministries which are defying the Prime Minister.
In the previous Cabinet meeting, the Prime Minister also expressed annoyance towards those ministries which failed to implement Cabinet decisions in letter and spirit, taken during last three years, notably the Commerce, Defence, Finance, Law, Education Ministries, and the Planning Commission.