Pakistan Automotive Manufacturers Association (PAMA) has rejected the newly-drafted five-year Auto Industry Plan 2014-19 (ADP 2014-19), saying it is completely contrary to the agreed policy, well informed sources told Business Recorder. An inter-ministerial panel headed by Minister for Water and Power, Khawaja Asif is accused of preparing the new policy after a number of in-house meetings without sharing the final draft of the policy.
There are reports that local car assemblers may use the influence of the Japanese embassy like in the past to block the policy. On March 18, 2014 PAMA, in a letter written to the Secretary MoI&P, Shafqat Naghmi who is also the CEO of Engineering Development Board (EDB) cited a report in Business Recorder on the new auto policy. In his letter, Director General PAMA, Abdul Waheed Khan, stated that work on the formulation of a new auto policy began in November 2010 much before the erstwhile policy (AIDP), which expired on June 30 2012.
According to him, there were regular deliberations and, over time, as much as nine meetings were held and the final document was worked out, with all stakeholders in consensus, and submitted to the government on May 18 2012. He further stated that the May 18 2012 document was supported by EDB yet, regrettably, it did not see the light of the day. "As we examine the draft auto policy published in the press we, unfortunately, find its contents widely at variance with the proposals that were agreed with the industry in the document of May 18th to the extent that if they are put into effect, would lead to shutdowns and closures and may ruin the industry. These published proposals are one-sided and were never and actually discussed; they are indeed a distressful surprise," he added.
Local car assemblers have also been grilled by the National Assembly Standing Committee on Industries and Production for overcharging consumers. PAMA members were said to be speechless in the standing committee when an official of the EDB accused them of not guaranteeing local fitness certificates and a mechanism to recall defective cars in accordance with a global practice.
Mian Manan, who briefly chaired the meeting, stated that the companies do not take the cars back until the owner kills 10 to 15 people due to defective brakes. PAMA, in its letter to Secretary Industries expressed annoyance over the new policy contents. "We are not clear about the authenticity of the contents of subject report. However, considering the source stated to be EDB we have to take the matter seriously and bring to your attention that such proposals were never previously discussed which is in disregard to the previous practice and policy. In case there is any consideration to these proposals we would request you to give us an immediate audience to discuss the matter immediately. We hope to hear from you soon," the sources quoted Waheed Khan as saying in his letter. Officials in the federal government argue that as the contents of ADP 2014-19 appeared in Business Recorder, shares of car assemblers jumped because of tariff to be approved by the government.