The Senate Standing Committee on Industries and Production has finally discussed the soaring prices of locally assembled cars despite claims of assemblers that most of the auto parts were manufactured locally.
In its meeting on Thursday, the committee consulted the Ministry of Industries and Production (MoIP) as well as the Engineering Development Board (EDB) on the matter and decided to invite automobile manufacturers to hear their side of the story as well prior to reaching a conclusion.
The committee was told that engine-related parts and some other critical parts, which required heavy investment and hi-tech manufacturing units, were imported while other parts including the structure, interior, exterior and brake systems etc were manufactured locally. The meeting was informed that car manufacturers were in the private sector and there was no legal provision available with the industries ministry and EDB to control or fix prices of automobiles in the country.
Moreover, the imposition of taxes and levies fell within the purview of the Federal Board of Revenue (FBR). The committee was presented a biannual review of the budgetary allocation and its utilization by the Ministry of Industries and Production with special focus on the Public Sector Development Program (PSDP) allocation for 2019-20 along with details of PSDP proposals for 2020-21.
Full Story: The Express Tribune