The Federal Board of Revenue (FBR) is said to be supporting import of Indian goods despite strong opposition by the domestic industry and knowing that New Delhi is reluctant to remove non-tariff barriers for Pakistani goods, sources told Business Recorder.
The recent example of FRB's 'kindness' for the Indian goods related to import of buses, assembled in Dubai with 60 percent Indian parts. Sources said that the organisation of local auto manufacturers had objected to the proposal tooth and nail, but the FBR did not pay heed to them because the party, which was importing the buses, was more influential than the PAMA. The proposal has been approved recently by the (guest) caretaker Economic Coordination Committee (ECC) of the Cabinet, headed by Prime Minister Muhammedmian Soomro.
Though local manufacturers are still charging additional amount from the customers, sources were of the view that when CNG-fuelled buses were being manufactured by them, their import would hurt the local industry, which has already invested substantial foreign exchange.
When contacted, a government official confirmed that the ECC had approved the proposal of FBR, but it would be one-time concession, and not a permanent feature, forever.
According to the official, the ECC had been apprised by FBR that local industry could manufacture CNG buses, but they were more costly as compared to India, which had started manufacturing before Pakistani companies. Pakistan has already registered its strong protest with Sri Lanka government for sending Indian auto parts into Pakistani markets.