CAP pushing EDB to permit imports of heavy construction machinery for CPEC

ISLAMABAD: Contractors Association of Pakistan (CAP) is pushing the Engineering Development Board (EDB) to permit imports of heavy construction machinery, Euro-II compliant vehicles older than five years and specialized vehicle mounted for China-Pakistan Economic Corridor (CPEC).

The domestic heavy industry opposing CAP’s move stated modification in policy currently would cause immense damage to assemblers and make new entrants to reconsider their decision to invest in Pakistan, reported Dawn.

A meeting was held last week between EDB officials and CAP, in which the latter apprised the former and domestic assemblers that eight types of construction equipment weren’t being produced in Pakistan.

CAP said it wanted its contractors to be permitted imports of such equipment on remaining life basis or age limit be increased to 15 years from present five years.

Construction machinery equipment not being manufactured in Pakistan include Euro-II compliant completely built units (CBU) which constitute of prime mover’s trucks, transit mixer trucks, cement bulker truck, mobile cable crane, drilling specialized trucks, super swing truck conveys, cement bulker truck and dump trucks for highways.

But domestic heavy assemblers told the meeting no increase in age limit should be extended in purview of Auto Development Policy 2016-201.

They requested CAP member to talk with domestic industry about needed machinery and vehicles.

On the contrary, the assemblers said they manufacture all kinds of tricks and prime movers. They added higher range has been manufactured and supplied to National Highway Authority (NHA) and Frontier Work Organization (FWO) on special orders.

Commerce Secretary Younus Dagha in a meeting held in mid-February had said import policy based on remaining productive life wouldn’t be feasible.

But in a meeting held on March 13^th, 2018, it was jointly agreed some equipment and machinery was not being produced domestically. A new PCT heading is needed to be itemized separately regarding the machinery and equipment not being produced domestically.

As per the Auto Development Policy (ADP) 2016-2021, HS codes which include concrete mixer lorries (8705.4000), prime movers (8701.2040), designers designed for off-highways use (8704.1090) and etc are restricted to age limit of five years.

Domestic heavy vehicle assemblers and Cap were told to forward their suggestions to EDB who would submit them to the commerce ministry for recommendation in budget of FY 2018-19.

Pakistan Automotive Manufactures Association (PAMA) apprised EDB that a meeting held in early-December 2017 by Ministry of Industry had reached a consensus CAP would provide specifications of eight specialized vehicles with yearly projected volume with relevant stakeholders.

This also included the ministry, EDB and the domestic industry, PAMA said. It added officials from CAP and EDB were to visit assembler’s plants for future partnership between assemblers and CAP.

PAMA stated CAP never got in touch with any domestic assembler or government department in this regard and it was concerned only with import of used machinery, which wouldn’t help the economy.