Government is likely to grant NDMA or MFN status to India on March 21, 2014 in a federal cabinet meeting to be presided over by Prime Minister Nawaz Sharif, well informed sources in Commerce Ministry told Business Recorder. Commerce Ministry's top brass is meeting the India's 'sensitive' stakeholders one by one as an eyewash strategy. This was the general feeling of the participants of the auto sector after a two-hour consultative meeting with the representative bodies of the auto sector - PAAPAM and PAMA - on Monday.
The meeting chaired by the Minister of Commerce Khurrm Dastagir was attended by Fazal e Abbas Maekan, Additional Secretary Commerce, Billal Khan Pasha, Dept. Secretary Commerce, Usman Malik, Chairman PAAPAM, Nabeel Hashmi, Shariq Sohail, Aamir Allahwalah all former Chairman PAAPAM, Abdul Waheed Khan, DG PAMA, Pervez Ghias CEO Indus Motors, Sohail P. Ahmed Director House of Habib, Irfan Aqeel CEO Millat Tractors and others from different sectors of the auto industry.
Articulating the views of the vending side of the auto industry, Usman Malik told the Minister that Pakistan is among the 22 countries in the world that assemble cars which is indeed a distinction for the country. The local industry is making parts for international brands at a cost which is highly competitive. Responding to a point raised by the Minister, he said Indian industry enjoyed full support of its government.
"We have ample proof that Indian part makers got direct and indirect subsides while we are facing challenges of most expensive yet unavailable energy, ever worsening law and order situation and very expensive mark-up rates. The list could go on and on," he added. Shariq Sohail said that auto industry was deeply worried about the outcome of the divergent policies that different departments and ministries were making without any co-ordination either with each other or with the industry. He said trade with India and the revision or rationalisation of SRO were being carried out at the same time, yet in isolation of one and other. "The result for the industry could be catastrophic," he said.
Abdul Waheed, DG PAMA, said it was being stated that the proposed revised sensitive list was shared with PAMA while sitting here he was totally unaware of such a list. Auto industry is hearing things but nothing has been shared with PAMA officially by the ministry, according to him.
Usman Malik said that PAAPAM totally rejected the proposed revision as it did not cover even a single part of the vending industry. He added that CKD and CBU had nothing to do with vending industry and these are the only two things for the auto sector in the final 100 lines proposed to be protected at a five-year period. He said as per the proposed mechanism vending industry would be the biggest loser. "Who will invest in new projects and parts if he knows that his investment will become redundant in 2 to 5 years period," he asked the Minister.
The Minister could not back up his claim with any concrete fact that government would create a mechanism to stop dumping from Indian exporters. When asked to identify practical developments on grounds as there were reports that MoC was going to get cabinet approval for NDMA on 21st, he assured the participants that his ministry would ensure adequate protection to the industry. However, his assurances did little to satisfy visibly worried industrialists. Questioning the logic behind such a move they asked: "How can it be in the national interest to give up Pakistani market to Indian goods without negotiating any reciprocal access for the local Industries?" It is pertinent to mention here that an inter-ministerial panel jointly presided over by Finance Minister Ishaq Dar and Commerce Minister Khurram Dastgir accorded approval to NDMA to India a couple of weeks ago.
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