Senator Vawda Alleges Four-Company Monopoly in Auto Sector

The alleged monopoly of four companies in Pakistan’s automobile sector came under discussion at a meeting of the Senate Standing Committee on Finance on Tuesday, where Senator Faisal Vawda accused the system of favouring a small group of firms through the existing regulatory framework.

The issue was raised during a meeting chaired by Senator Saleem Mandviwalla, as lawmakers reviewed matters relating to vehicle safety standards, regulatory oversight and institutional jurisdiction in the auto sector.

Senator Vawda questioned the policy framework governing vehicle standards and inspections, alleging that it had enabled a monopoly by four major companies in the industry. He argued that the structure of the local automobile policy was causing financial losses and inefficiencies, while allowing regulatory bodies to act beyond their defined mandate.

In particular, he criticised the role of the Engineering Development Board in setting safety and inspection standards for the sector.

During the proceedings, committee members also discussed the jurisdiction over safety standards, noting that the authority had previously been shifted from the Ministry of Industries and Production and was later returned to the Ministry of Science and Technology after internal review and objections raised during committee deliberations.

Representatives of the commerce and science ministries told the panel that the cabinet committee had already assigned the Ministry of Industries and Production the responsibility for handling regulations in the sector. They added, however, that the legal and regulatory framework remained in draft form and would require parliamentary approval before implementation.

The committee was also informed that some standards had recently been revised to address administrative shortcomings. Officials acknowledged that mistakes had been made during the approval process and said corrective measures had since been taken.

The discussion further highlighted concerns over overlapping jurisdiction and inspection authority among the various institutions involved in regulating the automotive sector.

The meeting concluded with a decision to revisit the matter at a later stage, with the committee expected to propose a clearer division of regulatory responsibilities in the auto industry.