Import of CNG kits, cylinders by OEM: ECC likely to take up issue

The Economic Co-ordination Committee (ECC) is likely to take up the issue of banning import of CNG kits and cylinders by the Original Equipment Manufacturers (OEMs). Indus Motor Company's Chief Executive Pervez Ghias disclosed this while talking to a select group of reporters in Lahore.
The OEM representatives held a meeting with the Federal Minister of Industries a day earlier wherein issue was discussed in detail. The representatives while terming the ban an explicit discrimination demanded of the government to immediately review its decision.
It is pertinent to mention that the OEM imports just 0.2 percent of the total consumption of CNG kits and cylinders whereas commercial import still continued that has created imbalance between the industry and the commercial importers. As a result of ban, the CNG kit and cylinder prices have reportedly gone up by Rs 20,000 in the market and same is the case with resale of the used cylinders and kits, he added.
The OEMs were restricted to only import CNG kits who's L/Cs were opened before December 15, 2011. He further revealed that the Ministry of Industry has fully supported the OEMs stance and resolved to put up the case before the Economic Co-ordination Committee. To a question, he said that Pakistan Automobile Manufacturers Association did not oppose including CKD in positive list, as their import from India could be beneficial for the local industry. The CKD of the same company having same quality would be cheaper, as it would help save freight cost if price remains the same, he maintained.
The import of completely built unit (CBU) was included in the negative list because of strong opposition from the stakeholders in the perspective of trade with India under the MFN status. He, however, ruled out any fear regarding the CBU import from India and argued that its import was already allowed from China and Korea that has no significant impact on the local industry. Similarly, CBU import from India would not be cheaper and thus there would be no harm to the local industry, he maintained. He further contended that there was no concept of negative list in presence of MFN status and we would have to be competitive in the coming days, as negative list has to be phased out by the end of this year.