The Economic Co-ordination Committee (ECC) of the Cabinet has criticised the Petroleum Ministry for submitting a summary to allow import of CNG kits for which LC were opened before December 31 last year, without giving proper consideration to statistical data on local production of kits/parts.
Official documents showed that the ECC, in its meeting on December 15 last year, took the following decision on proposal of Petroleum Ministry: (i) a complete ban may be imposed on company-fitted CNG cylinders/ kits in locally-manufactured vehicles; (ii) moratorium on import of CNG cylinders and conversion kits may be imposed except where letters of credit have already been opened and (iii) CNG-fitted public transport vehicles - buses/ vans may be exempted from this moratorium.
The ECC was informed on September 4 this year that M/s Sazgar Engineering Works, which is manufacturer of four-stroke rickshaws, filed a writ petition in the Lahore High Court against the federation of Pakistan etc, seeking exemption of four-stroke rickshaws from the ban as it is a public service vehicle.
The Lahore High Court, in its order of April 19 this year, directed to dispatch the representation of the petitioner to the Secretary Ministry of Commerce (being respondent No1), for deciding it strictly in accordance with law after granting a hearing to the petitioner by passing a verbal order within a week from that day. Meanwhile, Ministry of Industries stated that under the West Pakistan Motor Vehicles Ordinance of 1965, 'public service vehicle' meant any motor vehicle used or adopted to be used for carriage of passengers on hiring or reward and included motor cabs and contract carriages.
The Ministry of Industries, accordingly, recommended including 'rickshaws' in the ECC decision by amending that decision. Subsequently, the Ministry of Commerce advised the Ministry of Petroleum and Natural Resources to move a summary to the ECC to seek exemption from ban to 'rickshaws' as recommended by the Ministry of Industries.
In view of foregoing and keeping in view the hardships cases of the investors, the Ministry of Petroleum and Natural Resources recommended that the existing ban should continue in accordance with the ECC decision of December 15, 2011. However, Ministry submitted the following proposals for consideration of the ECC: (i) import of cylinders/ kits for which L/C have been opened or bank agreement or bank contract (as per State Bank Regulations) has already been concluded before December 31 last year may be allowed and (ii) for the purpose of developing export-oriented business of CNG conversion kits, the import of parts/components of CNG kits may be allowed subject to the condition that these parts are not locally manufactured.
During the ensuing discussion, the ECC noted that the petition of M/s Sazgar Engineering Works was made on the basis of the submission of the summary under consideration. However, the proposals made in the summary were not relevant to the petition. Besides, no statistical data regarding the to proposals had been added to the summary submitted to the ECC.
It was also stated that the ECC, in its decision of December 15 last year specifically exempted large public transport vehicles - buses and vans - from the ban on CNG cylinders and kits and there was no intention to exempt all public service vehicles defined in the West Pakistan Motor Vehicles Ordinance of 1965. As such, a reply to the petition may be given on the above lines.
The ECC was also informed that there was only one Italian firm manufacturing CNG cylinders and kits in Pakistan. The ban imposed by the government has badly hit that firm, which informed the Board of Investment of its intention to close down its business in Pakistan. It was opined that the intended closure of a foreign manufacturing unit will send a bad signal and wilt discourage, badly-needed foreign investment. It was suggested that the ECC must take cognisance of the issue and take appropriate measures.
After detailed discussion, the ECC decided that Petroleum Ministry should re-submit its summary after adding statistical data supporting its proposals. The Ministry was also directed that the summary should also address the concerns of the Italian firm manufacturing CNG cylinders and kits in Pakistan.
Recalling its decision of December 15 last year, the ECC clarified that it had specifically exempted the large public transport vehicles, namely buses and vans, from the ban on CNG cylinders and kits and there was no intention to exempt all public service vehicles defined in the West Pakistan Motor Vehicles Ordinance, 1965, directing the Petroleum Ministry that reply to the petition sent by the High Court should be based on the above clarification.