With a view to encouraging new manufacturers of cars, the government has decided to review its deletion programme so as to meet the increasing demand for cars. Federal Minister for Industries and Production, Jahangir Khan Tareen, said this while talking to newsmen after launching the website of 'Punjab Vocational Technical Council' (PVTC) here on Tuesday. He said that talks with Japanese companies were underway for establishing car plants in the country.
He said: "The premium on car is on the rise due to availability of liquidity and car financing by banks and leasing companies. We had two options to discourage premium on cars: First, to impose 6-month moratorium on banks and leasing companies, so that demand for cars may be brought down. But the State Bank did not agree with the proposal, saying that it would send a wrong signal.
"Second option was to liberalise used car import. But this proposal could also not be opted as it was negative and unfavourable decision and against the interests of growing car industry.''
Another factor that caused surge in cars demand was growth of economy. "If we cross 6.4 percent of growth this year, the cars demand may be increased further. However, the car manufacturing companies have already been asked to increase their production capacity. Responding positively, Honda has taken initiatives in this regard, while Toyota has called its experts from Japan for expansion work," the Minister said.
In reply to a question regarding import of urea, Tareen said the government has recently imported 250,000 tons urea which cost Rs 1100 per bag to the national exchequer. However, urea is being provided to farmers at Rs 450 per bag. As such, the government is providing subsidy to the tune of Rs 3 billion," he added. With sufficient foreign exchange reserves, the government has capacity to bear the subsidy cost, he said.
About likely increase in petroleum prices, he said the government has already frozen diesel prices in the interest of farmers, while diesel price in India is 30 percent higher than in Pakistan.
Earlier, addressing the launching of website of PVTC, the minister said that federal government has allocated Rs 550 million from Zakat Fund for providing stipends to deserving students.
However, the fund does not allow purchase of capital equipment for which Punjab government has provided Rs 300 million. The PVTC is a good example of public-private partnership which would help alleviate poverty from the country, he added.
He said that district boards have already been formed which are independent in taking all decisions. He hoped that 400 vocational institutions would be established in rural areas. He asked PVTC to ensure provision of quality education while expanding its network.
PVTC Chairman Sikandar Mustafa Khan said that the Council, despite administrative and financial constraints, imparted technical training to 3500 students and set up 16 new institutions.
The Council has so far set up 62 institutions, in which 17,000 students are getting education. At the end of current financial year, the number of institutions would be increased to 100 where 25,000 to 30,000 students would get technical and vocational training, he added.