National Assembly’s Standing Committee on Industries and Production showed serious reservations over the delayed delivery of new vehicles by the manufacturer/assemblers, indicating towards the apparently evident black marketing in the process of delivery to customers.
During its 26th meeting, which was chaired by the committee’s Chairman Asad Umar at the ministry of industries and production on Friday, the chairman and other members expressed their displeasure over the absence of any proper mechanism to check the black marketing of new cars, saying that both the assemblers and the ministry were responsible for the sufferings of customers at the hands of middlemen.
The representative of Indus Motor Company could not satisfy the committee on queries repeatedly raised by its members. “I have asked the same question regarding any existing mechanism to check the transparency in delivery of cars to the customers for four times, but you are not replying to what has been asked,” Asad Umar told the company’s representative adding, “this means there is no mechanism at all to check how the dealers and middlemen exploit customers by not delivering the booked vehicle within the scheduled time.”
However, the representative of Indus Motors informed the committee that the company compensates the customers, only those with a delayed delivery of more than 60 days. “The company pays Kibor plus 2 per cent to those consumers who are delivered cars after the stipulated time. The company has paid Rs 156 million under this account so far,” he added.
A member of the committee complained that the committed date of delivery of the car was being changed by the dealers, blaming the assemblers for the delay/change in the date of delivery. “How long we will face this advance booking system in the country? The committee also pointed out that the local assemblers are not delivering the cars as per commitment.
Alhaj Shah Jee Gul Afridi, who is also the owner of M/s FAW, questioned as to why the local investors were being discouraged. He accused Finance Minister Senator Ishaq Dar of discriminating against him at the time of the Auto Policy just because he raised his voice in favour of the tribal people at different forums.
“When the country’s defence minister is involved in auto policy preparation, the outcome would not be any different,” Asad Umar said.
Secretary Industries and Production informed the committee that since consumer protection mechanism is not available in the auto policy, the committee should recommend that it be incorporated in the policy.
Discussing the issues of Pakistan Steel Mills (PSM), the chairman of the committee also expressed his displeasure over the absence of Mohsin Haqqani, a BS 22 officer, who holds the additional charge of CEO PSM, in the meeting despite a commitment. “We should issue an arrest warrant against him,” he said.
Secretary Industries and Production, Khizer Hayat Gondal, however, explained that the CEO took charge only a couple of days ago.
Replying to queries regarding the revival of PSM, the management of the mills accused the federal government of not extending the required funds for the mill’s rehabilitation.
Secretary Privatisation Shahid Mehmood also faced severe criticism for not presenting a ‘way forward’ plan for PSM in the shape of a proper presentation, which is on the active list of entities to be privatised but has been and dysfunctional for the last several years. He, however, informed the committee from his handwritten notes that he has discussed the issue with the management of SSGC and the National Bank of Pakistan (NBP). The total volume of the outstanding amount of NBP and SSGC against PSM stood at Rs 100 billion, out of which SSGC’s outstanding amount is Rs 37 billion.
The committee was informed that the government has extended five bailout packages to PSM and the amount of the last package was Rs 18.5 billion. Acting Chief Finance Officer, Arif Shaikh informed the committee that mill is profitable at 77 per cent capacity. However, the chairman standing committee challenged his contention claiming that the mill is profitable at 38 per cent capacity.
A representative of the CBA Union who was specially invited by the chairman standing committee informed the committee that all financial requirements of the management are being met but the employees have been deprived of their salaries since January, adding that two employees have already committed suicide due to financial woes. The CBA officials also stated that the retiring employees are not being paid their benefits, prompting the chairman to state that it is a criminal act as the government cannot use this money.
The committee expressed annoyance at the prolonged delay in payment of salaries to the employees and recommended payment of at least a three-month salary to the employees before Ramzan.
Chairman committee argued that a loss of $ 800 million was incurred during the shutdown period and had the government spent this amount on the mills’ revival, it could have been functional by now.
Besides others, members of the committee who attended the meeting included Sajida Begum, Ch Riaz-ul-Haq, Dr Shazia Mansab Ali Kharral, Maulana Gohar Shah and Iftikhar-ud- Din.
