Amid economic crisis, AJK govt issues tender for imported luxury car 

The base model of the Mercedes-Benz S.580 AMG Premium Plus Plus Executive sought by the government retails for $124,000 without duties

LAHORE: At a time when the import of basic products such as lentils and medicine are facing issues because of the dire condition of the country’s foreign exchange reserves, the Government of Azad Jammu and Kashmir has issued a tender notice on April 3, 2023, for the procurement of a Mercedes Benz S.580 AMG Premium Plus Plus Executive edition. 

The car is to be added to the Central Transport Pool of the Services and General Administration Department (S&GAD). The base model of the Mercedes Benz S.580 2022-23 has an average starting price of $124,000 across different markets globally.

The tender specifies that the vehicle should be a Mercedes Benz Car S.580 2022-23 model, unregistered, zero-meter, AMG Line Premium Plus with standard accessories in a black metallic colour. The procurement process for this tender is being governed by the AJK PPRA Rules 2017, and prospective vendors must meet certain required qualifications to be eligible to participate.

Bidding guidelines 

These required qualifications include possessing a valid income tax registration certificate and an active general sales tax registration number. Vendors must also submit a signed affidavit that confirms they have not been blacklisted, involved in any corrupt or illegal practices, or banned by any procuring agency or the PPRA. Additionally, vendors are required to attach a bid security amounting to Rs. 6,000,000 (Rs 60 lac) in the form of a CDR from any recognized bank made out to the DDO Central Transport Pool, Muzaffarabad, AJ&K.

Prospective vendors can obtain the bidding documents, which include detailed specifications, terms and conditions, and other relevant information, from the Central Transport Pool within business hours. Bidding will be conducted through a single-stage, single-envelope procedure, as per the AJK PPRA Rules 2017. All bids must be submitted through registered Dak/Courier services or by hand submission on or before April 18th, 2023, at the office of the Special Secretary/Chairman Purchase Committee, located in Block No. 3, New Civil Secretariat, Chattar Muzaffarabad.

A tone deaf move 

The government’s move also raises questions about its priorities and judgement. At a time when the country is struggling with high inflation rates, soaring prices of essential commodities, and an unstable economy, the decision to spend such a huge amount of money on a luxury car seems tone-deaf and insensitive to the plight of the general populace who are grappling with these issues.

Compounding the issue, Pakistan has been denying many businesses access to Letters of Credit to import materials needed for their operations due to the foreign currency crisis. Yet the AJK government seems to have no qualms about importing a luxury car from abroad, while many other important sectors of the economy are struggling to survive.

One wonders if the AJK government plans to use the car to navigate the rugged mountain terrain or if it will be reserved for more important tasks such as transporting VIPs. However, if you are interested in participating in this tender, ensure to meet the required qualifications and submit your bid before 18.04.2023 at 12:30 PM.

Daniyal Ahmad
Daniyal Ahmad
The author is a member of the staff, and covers the automobile, energy and advertising insdusties as a sector analyst. He can be reached at [email protected]

1 COMMENT

  1. It’s disappointing to hear that amid an economic crisis, the AJK government has issued a tender for an imported luxury car. While it’s important for officials to have transportation, it’s concerning that taxpayer money is being spent on a high-end vehicle during a time of financial struggle. I hope that the government will reconsider this decision and prioritize more essential needs for its citizens. Thank you for bringing attention to this issue.

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