The 2nd meeting of the Auto Industry Development and Export Committee (AIDEC) was held on 16th August, 2022 at Engineering Development Board under the chairmanship of Mr. Raza Abbas, CEO- EDB.
Syed Murtaza Mahmud, Honorable Minister for Industries and Production also graced the occasion with his presence. 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), Higher Education Commission, Ministry of Commerce and Ministry of Science & Technology along with representatives from automotive industry.
CEO-EDB informed 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.
Syed Murtaza Mahmud, Minister of Industries and Production remarked that Pakistan is passing through challenging times and the government has taken measures to control trade deficit. However, PKR is appreciating again due to government efforts and industry should accordingly consider decrease in prices. Secretary AIDEC informed the house that few companies have recently decreased prices which sent a positive signal and that similar steps are expected from other OEMs. He added reduction in prices due to decrease in input cost is a positive step for customer welfare.
The Federal Minister emphasized that Pakistan cannot depend on imports. He explained that Uzbekistan has only one automotive manufacturer and they are making high value parts like engine, transmission etc. Pakistan needs to focus on import substitution and export enhancement. The Federal Minister asked EDB to coordinate with PAAPAM & PAMA and submit proposal for localization and exports of high value added parts as well as safety features compliance report to the Ministry by 31st December, 2022 for implementation in Finance Bill.