Karachi: The local motorcycle industry has welcomed the decision of Economic Coordination Committee (ECC) regarding gradual adjustments in tariffs of CKD and CBU imports.
Director General Pakistan Automotive Manufacturers Association (PAMA) Abduld Waheed Khan, in letters written to the Deputy Prime Minister Chaudhry Pervaiz Elahi and Finance Minister Dr. Abdul Hafeez Shaikh have termed the decision as a vital initiative to remove uncertainty from the industry. This uncertainty was holding back investment from the industry and therefore hindering growth.
He said that the prudent decision on policy regarding motorcycle industry taken, after detailed deliberation, would safeguard the industry while removing the uncertainty prevailing in the industry.
‘Being the representatives of the industry we appreciate the decision of the government to lower down tariffs in a phased manner as it will support local manufacturing. Also, the decision will reinforce the investor’s confidence for bringing in new investment and introducing new products,’ he added.
The letter further said that the local industry never opposed lowering down of tariffs and did never discourage competition. We know, it adds, the decision to gradually lower down CBU rate to 58 per cent, localized parts to 38.75 and CKD to 10 per cent is a positive signal that will encourage investment and innovation in this growing industry.
This decision of the government, the letter added, has saved around 1.5 million jobs because Pakistan is among the top 15 motorcycle manufacturing countries in the world producing quality two wheelers of international standards ranging between 70cc to 150cc based on modern technology, while having a huge downstream engineering base which would have found it difficult to continue operating when there were decline in orders from local companies in wake of uncertainty.
Cement exporters having potential to export a big quantity to Indian market are facing a strict resistance by the Indian government as NTB are not removed even after having been specifically mentioned during different rounds of official and unofficial talks between the two countries.
Exporters issues, including a complex six to seven months process to obtain a certificate from Indian authorities should be resolved on the priority basis because it was committed by the Indian government for having a status of Most Favorite Nation (MFN) from Pakistan.
They mentioned the quality certificate for cement exporters is valid for one year period merely, despite of six to seven months procedural duration. But none of the exporters is allowed to continue their exports after expiry of certificate limit that are needed to get renewal in a brief period.
The complicated process of quality certificate holds on cement exports of many companies at a time hence the exports quantity shrinks gradually, they mentioned. The procedures have not been eased by the Indians and the certification cost is very high as the exporters have to bear heavy expenses for the visit and stay over of Indian inspectors.
They pointed out that Pakistani and Indian railways could exchange the same number of wagons for transportation of goods exports however the Pakistani wagon could not carry big cement orders due to restriction by Indian government as a rule of reciprocal. The railways wagons from the Indian side is limited for cement exporters which increases their cost of cement transportation heavily, cement exporters said.
Cement manufacturers said that Pakistan should cement trade ties with India on equality basis rather than giving easy access to Indian company in the exchange of nothing in the presence of NTBs.
They demanded the government to raise the issues of NTBs before Indian government for immediate solution and allow Pakistani cement makers to explore markets in all potential provinces on priority basis.
Dear TNT Reader,
At The News Tribe, our mission is to bring you free, independent, and unbiased news and content that keeps you informed and empowered. We are committed to upholding the highest standards of journalism, as we understand that we are a platform for truth.
Apart from independent global news coverage, we also commit our unique focus on the Muslim world. In an age marked by the troubling rise of Islamophobia and widespread misrepresentation of Muslims in Western media, we strive to provide accurate and fair coverage.
But to continue doing so, we need your support. Even a small donation of 1$ can make a big difference. Your contribution will help us maintain the quality of our news and counteract the negative narratives that are so prevalent.
Please consider donating today to ensure we can keep delivering the news that matters. Together, we can make a positive impact on the world, and work towards a more inclusive, informed global society.
Donate Monthly Subscription Annual Subscription