The Ministry of Industries and Production has disagreed with the proposal of commercial import of three-year old used buses with a capacity of 40 or more seats. The Ministry of Industry and Production, however suggested Ministry of Commerce to allow import of 10-year old used buses on commercial basis to only those entities having complete facilities to refurbish and recondition these in Pakistan, sources told Business Recorder on Tuesday.
If the decision was taken to allow import of 10-year old buses into Pakistan, it would not only bring new investment into the country but also positively impact the whole economy. This would also help transfer of technology besides broadening vendor-base, which in turn would create more employment for the skilled manpower. The MOI&P opined in its suggestions, that 10-year old buses, being cheaper in the international market, would benefit the consumer while there would be no issues regarding the fuel compliance, as fuel used in such buses is easily available in the country.
The MOI&P has contradictory view regarding the import of three-year old uses buses and argued that such buses would not be viable because of the non-availability of Euro-4 fuel in the country for the use of these buses. While intimating its conflicting point of view to the Ministry of Commerce, MOI&P said that the import of used buses on commercial basis has never been allowed in the past as a conscious policy so that the local industry, which is working below its production capacity, could be promoted and protected. The local industry, against the higher demand, has so far produced only 4,254 buses during the last five years.
It is pertinent to mention that the industry, which is at its emerging stage, has a total production capacity of 5,000 units per annum. Moreover, it is facing hardships because of the rising prices in the international market. Besides, persistent depreciation of the local currency against the foreign currencies is resulting in increasing cost of locally produced buses.
The MOI&P believes that the proposal of three-year old buses import would leave negative impact and would be a burden on the much needed foreign exchange reserves at this crucial stage. The proposal would not only be harmful to the local assemblers but also hurt the vendor industry, as the spare parts of such used buses are usually smuggled into the local after sales market which in turn could cause loss to the national exchequer.
The MOI&P further disagreed to the proposal that the buses to be imported into Pakistan should be examined and certified by some reputable pre-shipment company to ascertain whether the buses have road life of at-least five-years, saying it would further promote discretion and mal-practices. It was also pointed out that the option of three-year old buses import could prove counter-productive, as it would consume substantial amount of foreign exchange on the one hand and would reduce the vendor base on the other.
The Ministry of Industries also opposed the proposal regarding increase of age limit of trucks, tractors, buses and vans from the present three to five years under the baggage and gift scheme, and argued past record reveals that this may not be helpful in providing relief to the consumers.