Public Accounts Committee (PAC) held a meeting today to discuss various matters including Pakistan’s auto sector.
The meeting was attended by the Chairman Federal Board of Revenue (FBR), Asim Ahmed, Secretary Industries and Production, Imdad Bosal, CEO of Engineering Development Board (EDB), Raza Abbas Shah, and other relevant officials including representatives of car companies.
It discussed the vehicle delivery delays and concerns regarding build quality. PAC Chairman, Noor Alam Khan, expressed his dismay regarding the absence of car company CEOs, secretary of climate change, and secretary of information and technology from the meeting.
A Pak Suzuki Motor Company (PSMC) representative stated that the company currently has orders for 20,000 units. He said that the new Suzuki cars have all the safety and convenience features, hence the strong demand.
PTI MNA lambasted EDB’s inability to use its authority and ensure the development and betterment of Pakistan’s car industry. He said that the people are still awaiting the local manufacturing of cars in Pakistan.
“Essential components such as engines and drivetrains should be made in Pakistan but aren’t. Furthermore, the overall quality of locally assembled cars is an absolute travesty,” the committee lamented.
EDB rebutted that it is making efforts to enhance Pakistan’s car industry, which has borne fruits as well. “Seven new companies have started local assembly of cars in Pakistan,” CEO EDB said, adding that EDB has had significant contributions in making that happen.
He added that EDB is seeking cooperation from some large automotive groups to be more involved. “Carmakers do not let us check the new vehicle to see if it meets the safety standards,” EDB officials said.
Committee members also expressed their concerns regarding taxes on electric vehicles (EVs). “EVs should not be subject to 13.5% or 17% sales tax,” committee members said.
PAC Chairman conclusively asked EDB to ensure better output from automakers in terms of quality and service.