EDB resolves issue of blocked payments of vendors

Engineering Development Board (EDB) has helped more than 70 Pakistani vendors to get their blocked payments for two years from a Chinese motorcycle assembler and has started monitoring of business management of the other motorcycle assemblers.
Vice Chairman Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), Syed Nabeel Hashmi told Business Recorder here on Thursday that out of 250 vendors of the Chinese Motorcycle Assembler Plum Qunqui, payments of nearly 70 vendors was blocked for past two years. However, with the personal intervention of Chief Executive Officer, Engineering Development Board (EDB) Aitazaz A. Niazi the matter has been resolved amicably.
Hashmi recalled that motorcycle sector witnessed robust growth duly supported by PAK_CHINESE manufacturers who are offering price stability and quality. There has been good vendor growth in this sector, localisation is strong and appreciated.
However, due to un-checked license approvals to the tune of 114, many companies have entered without good management controls. A large number of PAAPAM members are being purposely stuck up by some companies and even though agreed terms of 30 - 45 days yet bills are not being cleared for over 180 days.
He said one of the problems recently concluded by Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) with the help of Engineering Development Board (EDB) includes a Chinese OEM.
Hashmi and PAAPAM Managing Committee expressed their gratitude to CEO (EDB) Niazi for his timely intervention in resolving the issue.
Hashmi while chairing the meeting of managing committee also lauded the co-operation of Assembler and hoped that other Chinese Motorcycle Original Equipment Manufacturers (OEMs) will follow the suit and review financial matters with vendors for betterment.
Talking to Business Recorder Niazi said that according to PAAPAM estimates record 1.8 million motorcycles had been manufactured in the country from 1st January 2010 till 31st December. Of these 55 percent motorcycles were manufactured by the Chinese OEMs and the remaining 45 percent motorcycles were manufactured by the Japanese companies. He said the EDB could not keep this huge manufacturing sector unattended and leave it at the mercy of the market forces. He said EDB was monitoring performance of this sector and helping it whenever it was required.