Friday, 7 July 2017

Auto Vendors Oppose Govt’s Proposal On EDB

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Under the direction of Prime Minister Nawaz Sharif, automotive suppliers do not support the government's proposal that several ministries and departments will deal with the automotive sector after the EDB closes.

Industrial Production Minister Ghulam Murtaza Khan Jatoi said on Wednesday that he will take care of the automotive industry and automotive industry at a meeting with automotive suppliers and that the customs will be waived by the Federal Board of Revenue (FBR). The Trade Agreement (FTA) is handled by the Ministry of Commerce and the Ministry of Science and Technology is responsible for standardization.

Mashood Ali Khan, president of the Pakistan Association of Pakistan's Association of Parts and Accessories Manufacturers (Paapam), said in a Dawn speech Thursday that vendors do not support the offer.

EDB has acted as a "one-window" for the automotive sector, dealing with issues related to tariffs, FTAs, etc., and sent recommendations to relevant ministries, he explained.

"We need a window to grow the industry," he said.

Paapam is scheduled to meet Khizar Hayat Gondal. To emphasize the negative impact if the EDB (MoI's strong department) is dismantled. So far, the government has not given any notice of the dissolution of the EDB.

EDB held its 35th meeting on July 10 to implement the instructions of Prime Minister Nawaz Sharif on the dissolution of the EDB.

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The bicycle maker said it was apparent in EDB's letter to the bicycle assemblers three days before the annual production details, procurement of local parts and imported parts and in-house changes. He said all assemblers provided this detail to the board each year.

The Pakistan Automobile Manufacturers Association (PAMA) did not show any anxiety about the fate of EDB.

Even automotive builders are not ready to comment on this development.

Khan said the closure of the EDB occurred at a meeting of the Energy Sector Cabinet (CCOE), which was criticized by the board for the delayed approval of the China-Pakistan economic corridor power project and the rampant corruption.

It has been instructed to dissolve the organization from the prime minister because it no longer achieves its useful purpose.

Interestingly, he said that the EDB exemption exemption requirement has already been removed for IPP projects of more than 25MW, he said in the Finance Bill 2016-2017.

Therefore, the CCoE may have been misrepresented regarding the delays in processing power proposals by the EDB. He added that the role of EDB, which handled 25MW or more power projects in the Ministry of Water and Power, was added.

Paapam said CCoE needed to think about the criticism and the unfair position on the performance of EDB.

At a news conference Thursday at a local hotel, Papamu said he had never been involved in scandals or corruption scandals at the EDB since its creation in 1995.

The board promoted localization of the domestic automobile industry and auto parts to promote 70% of cars, 95% of bicycles, 90% of tractors, 50% of trucks and buses.

EDB implemented the elimination program in the 1990s, followed by the tariff system, and in 2007 the first automatic policy was established. The board also restored truck / bus manufacturing through effective control of the automotive sector regulations (including SRO 655, 656 and 693), controlling smuggling / stigma, preparing a second automobile policy in 2016.

He said that since 2010, the government has failed to focus on EDB or engineering. EDB has reduced its number of employees and even operated without a CEO from 2012 to 2015. Finally, EDB added that since March 2017 there are no permanent CEOs.

He said he was not worth insisting on equality with EDB officials for corruption charges.

"Our member countries have not experienced corruption at any level of the EDB, the industry is back and there are new entrants," he said.

He urged the prime minister to hold a meeting with the Paapam commissioners on the EDB issue.

Former Chairman Paapam Aamir Allawala said growth in the automotive industry played a key role in overall GDP growth over the past three years.

The EDB also added support for the industry's position during the negotiations between China, Pakistan and Turkey on the FTA.

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