Press Release

EDB stressed the need to improve quality control of local vehicles

(Karachi P.R. 29th July, 2016) The second meeting of FPCCI Standing Committee on Automotive was held in federation house which was presided by Mr. Ghazanfar Ali Khan while Mr. Tariq Ejaz Chaudhary Chief Executive Officer of Engineering Development Board (EDB) was the chief guest. Various issues pertaining to the engineering sector came under discussion particularly with respect to automotive industry of two wheelers, three wheelers and four wheelers. The meeting also discussed the issues of PTA and FTA with various countries and their possible effects on industrial sector.

While replying to the queries and question raised by Mr. Ghazanfar Ali Khan Chairman Standing Committee, Mr. Tariq Ejaz CEO EDB stated that Engineering Development Board is a facilitator of manufacturers/vendors of engineering components. It does not compromise on the quality of the products and work for the safety and security of the consumers of Pakistan. Mr. Tariq Ejaz was critical on manufacturers of four wheelers for not introducing modern technologies with reference to the safety measures. He also lamented the local car manufacturers/assemblers for not introducing latest model and were confined to outdated models. He also disclosed that the manufacturers of Japanese giant, Toyota; German’s Pride Volks Wagon and French’s dignity Renault were inclined to make joint ventures investment in Pakistan but mainly due to used Car Policy.

He also spoke about the manufacturing capacity of the four wheelers in Pakistan which are running at under capacity utilization due to which the prices of locally manufactured vehicles not only increases but also the import of new cars. Mr. Tair Ejaz also emphasized on the quality related issues and technological advancement so that we could also exports auto products to other countries besides meeting of local demand. He is initiating a institute in Karachi which will provided facilities of testing of vehicles and will also work for the ratification of wheelers with Japan. The meeting also discussed that under the present circumstances like lack of infrastructure facilities shortage of utilities-electricity, gas etc.-coupled with the law and order situation, the survival of small vendors is at stake.

The Chairman Mr. Ghazanfar Ali Khan told to EDB to support the existing assemblers for setting up a new Greenfield plant and grant the same incentives as offered to the new entrants for Green field at least for one Model and 1% RD changes on steel which hit Auto-Industry. He also requested for immediate Amendment in SRO 568 and SRO 1178. Moreover, the Government of Pakistan should not allow Import of Auto parts at Zero duty otherwise Auto-Vendors Industry will be closed, he added.

Earlier, Maher Alam Khan Acting Secretary General in his welcome address underscored the need to further strength coordination and cooperation between the EDB and FPCCI with the view to promote and develop the local auto industry and making it competitive in the locak and global market.

Maher Alam Khan
Acting Secretary General