ISLAMABAD: The National Assembly Standing Committee on Industries and Production expressed concern over the extra money being charged by the dealers and the issues being faced by the general public due to late delivery of cars by Morris & Garage (MG) company.
During a meeting of the committee held under the chairmanship of MNA Sajid Hussain Turi on Monday, it was informed that MG was misleading customers by saying that it has a plant in Pakistan. “The company is wrongfully advertising about assembling vehicles in the country.”
The committee was informed that the company importing MG vehicles was different from the one registered with the government.
The committee, while showing serious reservation over the auto firm’s actions, has asked the Competition Commission of Pakistan (CCP) and Federal Board of Revenue (FBR) to attend the next meeting to discuss the matter in detail.
It was further informed that a premium of over Rs0.9 million was currently being charged on an MG vehicle in the market.
The officials of Engineering Development Board (EDB) said that MG company had received green field license on January 1, 2021 whereas it will be allowed to import Completely Knocked Down (CKD) kits once the company has installed its plant in Pakistan.
Members of committee, Riazul Haq said that the company should be investigated for alleged under invoicing and other violations.
However, EDB officials stated that it was clearly mentioned in the new auto policy, which is being finalised, that the company would return money to customers with 3 per cent kibor plus interest in case it fails to deliver vehicles within 60 days of booking.
The officials claimed that online booking is also being made part of the new auto policy to discourage illegal businesses in the auto industry.
Meanwhile, the Privatisation Commission director general also briefed the committee about salient features of the privatisation of Pakistan Steel Mills (PSM) and its retrenchment plan including, the remuneration package policy.
He informed the committee regarding the procedure adopted for the evaluation of assets of PSM but did not clarify the factors causing losses.
The Ministry of Industries and Production joint secretary said that pensions of retired employees of the steel mill had already been disbursed by the department.
The director general also told the National Assembly panel that the Cabinet Committee on Privatisation (CCOP), in its meeting held on June 17, 2019, had directed the Privatisation Commission to immediately advertise for the hiring of a transaction adviser for PSM committee (PSMC), i. e. to bring in a party for the revival of PSM without transferring full ownership. The commission’s board approved the initiation of process for the hiring of PSMC’s financial adviser.
Committee members expressed grave concern over the delay in hiring the financial adviser and hurdles in the way of privatising PSM from 2006-2021. The commission’s director general pointed out that 1,228 acres of land would be allocated on lease to a new subsidiary, but did not give details of the remaining land and settlement of liabilities.
The committee chairman showed his apprehension over the valuation of the said land, saying that fresh land valuation should be made by the government at market prices.
The committee also discussed that the government of Sindh may be taken on board before finalising the bid process to avoid any further delay in the revival of PSM. After detailed discussions, the committee decided that all stakeholders would be invited to the next meeting. The committee directed the industries ministry secretary to address the problems being faced in relation to security issues at PSM.
The secretary immediately directed the chief security officer of PSM to send a letter to the Sindh home secretary and Sindh Inspector General of Police (IGP).
