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2nd Meeting of Automotive Industry Monitoring Committee

2nd Meeting of Auto Industry Monitoring Committee was held on 31st March, 2022 under the chairmanship of Federal Secretary for Industries and Production, Mr. Jawwad Rafique Malik. Meeting was attended by senior officials from Engineering Development Board (EDB), Federal Board of Revenue (FBR), Pakistan Association of Automotive Parts and Accessories Manufacturer (PAAPAM) and Ministry of Science and Technology along with representatives from    automotive manufacturers.

Secretary, MoIP highlighted that Government is receiving numerous complaints due to price increase by various OEMs and lack of safety features in the locally manufactured vehicles. Auto consumers of Pakistan continue to suffer from delayed deliveries, frequent price revisions, menace of premium/on money and lack of choices among affordable cars in the market. Auto Industry representatives were of the view that factors for price increases are Pak Rs depreciation, increase in freight costs, increase in prices of raw materials and enhancement of taxes by government, in particular FED. All these factors have a compound effect, which is causing continuous increase in prices of locally manufactured vehicles. PAAPAM was of the view that the OEMs are making phenomenal profits however the same are not being shared with other stakeholders in the value chain, i.e. vendors and end users.

Secretary, MoIP acknowledged that increase in input factors might have contributed to the overall price, however a causal relationship between factor cost and end user price needs to be established and justified. He directed MoIP/EDB to carry out forensic analysis, through independent professional consultants/experts, and establish affect of factors indicated by OEMs on local car prices. The Chair also asked EDB to coordinate with PAAPAM & PAMA and submit proposal for localization of high value parts as well as safety features compliance report to the Ministry.


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