Automark

Suzuki Cultus a car known for its Executive looks was launched in Pakistan in 2000 by Pak Suzuki with 3 Cylinder 1000cc Carbureted Engine and 5 Gear Manual Transmission. The Car was very basic in its outlook and was launched with the three variant that was VX, VXR& VXL. Due to its sleek hatchback shape and economical price it became the Apple of the eye, or you can say it was the only hatchback at that time which had good space from inside while maintaining its sleek exterior. The Interior was luxury according to its price tag. The drive was comfortable. The rear Suspension was Independent which provides the smooth drive even on bumpy roads. In 2001 the Production of Factory Fitted CNG started so it became convenient to the buyers..

The VX variant of the Cultus had black bumpers with no air-conditioning while the VXR was equipped with Body matched color bumpers and with air-conditioning. The VXL Variant of the Cultus was Fully loaded that in addition to the VXR. The features that includes in VXL were POWER STEERING, POWER WINDOWS and BODY MATCHED SIDE MIRRORS.

In 2005, Pak Suzuki discontinued the VX variant while the VXR & VXL remain produced. Although the vehicle had not any Safety feature like SRS Air Bags or ABS but still it was ruling the market very well.

During the whole time period Cultus received some minor Cosmetic Changes that includes ALLOY RIMS, DOOR MOULDINGS, FRONT & REAR BUMPERS and HEAD & TAIL LIGHTS. The Interior Includes, the color changes in AC GRILLS, DASHBOARD FRONT PANEL COVER and a SPEEDOMETER.

In 2007, Pak Suzuki brought a major change in the heart of Cultus and that was the EFI ENGINE. The Old 3 Cylinders carbureted engine was replaced with New 4 Cylinders EFI (Electronic Fuel Injection) Engine while the Transmission remains same. The EFI engine provides the better fuel average than the carbureted engine because the everything in EFI Engine works on the basis of Sensors & Actuators which controlled by ECU (Electronic Control Unit) while improving power and torque delivery as well.The available variants were now called as VXRi and VXLi.

In 2010, Pak Suzuki Launched Suzuki Swift, but their own Cultus VXLi became the competitor to the new Swift so they had to discontinued the production of VXLi to boost up the Sales of newly launched Swift.

In 2012, Pak Suzuki introduced Euro II technology. It is used to prevent harmful emissions from the vehicle and make the environment friendly. Vehicles with EURO Technology also known as Green Vehicles.

In 2016, Pak Suzuki rolled out with the Limited Edition of Cultus. The Shape was same but still some cosmetic changes were made that included new door trims & fabric, 2-DIN sound system, matching door mirrors and alloy rims. The price of the final edition Cultus went up to PKR 11.24 lac for the Euro-II and PKR 11.99 for the Euro-II CNG variant.

This Limited Edition of Cultus remains Continued for about 1 year. In Feb 2017, Pak Suzuki representatives mentioned in a press release about the discontinuation of bookings of Cultus. The Journey of 17 years of Cultus was about to end, and revived in a new mode altogether.

After the discontinuation of Cultus, pictures of New Cultus already leaked and were roaming around the Internet. It became the hot topic for all Automotive Sites/Bloggers and Automotive Enthusiast. Many of them Praise the Car because they did not expect such type of modernized Car from SUZUKI.

In April 2017, Pak Suzuki officially launched the NEW CULTUS with its new Dynamic and Sleek hatchback Shape and with wide luxurious interior.Internationally this car is known as Suzuki Celerio and in Pakistan people also expected the same name but it was launched with the name of CULTUS. The car has new 1000cc, 3 cylinder K-series EFI Engine and 5 gear manual Transmission front wheel drive. The shape was totally different from its old model. The car is also equipped with Key-less entry & Immobilizer (Anti-Theft Security System). Inthis ignition key is encoded for exclusive use with the immobilizer only; therefore, it is impossible to start the engine without the original encoded ignition key. The New Cultus is also equipped with Electronic Power Steering System, Power Windows, Powered Mirrors which can be adjust from driving side, Fog lamps, Chromed front grill, Alloy Rims, ABS (Anti-lock braking system) and best feature regarding Safety is SRS Dual Airbags, one for driver and other for the front passenger while this the only locally manufactured car by Pak Suzuki which is equipped with Airbags. Although this car has not came with factory fitted CNG. The new Cultus is currently available in 7 colors i.e Pearl Red, Graphite Gray, White, Super Pearl Black, Cerulean Blue, Silky Silver & Sand Beige.This New Cultus came up with two variants that is VXR & VXL.

Difference between CULTUS VXR& VXL

• Cultus VXR is a base model that is very simple. VXL comes with Stylish Fog lamps while VXR does not have.
• VXL is equipped with Power Mirrors, while VXR is equipped with simple Mirrors.
• VXL has body color matched side mirrors and VXR has Black color side mirrors.
• VXL has power windows while VXR comes with manual handle through which you have to pull the mirror up or down with your own hand.
• VXL has modern ABS (Anti-Lock Braking System) which provides better grip while braking and prevent the vehicle to skit. And on the other hand VXR is has not ABS sytem.
• Cultus VXL has Alloy Rims while VXR has Steel Rims with Wheels Caps.
• Presence of Dual Air-Bags is the most important difference between both variants. Suzuki Cultus VXL comes with latest safety feature of SRS Dual Air Bag system but VXR does not have this feature. Dual Air-Bags means it has air bags not only for driver but also for passenger on front seat.
• Last and the most important difference between both variants of New Suzuki Cultus 2017 is the price. The basic variant of Cultus VXR comes in 1,250,000 PKR while New Cultus VXL which is fully powered variant comes in 1,391,000 PKR. Hence the difference between VXR and VXL is about 1,41,000 rupees.

All the Authorized Dealers have started to provide free Test Drive of this New Cultus from23^rd of April. On the same day the test drives started, many People Exchanged their old Suzuki Vehicle with the new Suzuki Cultus with Suzuki Exchange Program. Overall New Suzuki Cultus 2017 is perfect hatchback car that is added into the collection Pak Suzuki. Now everybody is waiting for the New Model of Suzuki Mehran and there is hope that it won’t be with just Cosmetic Changes!.

This exclusive article written by Taha Bin Mujahid and published in Monthly AutoMark Magazine’s July-2017 printed edition

Pakistan is considered as a developing country in the world, but most of the major sectors of the country are still facing serious problems and haven’t made any significant progress over the years. The transport sector is one of these sectors where stunted growth due to lack of resources, accountability and meritless appointments in top positions are major concerns. The transport system has deteriorated badly in recent times, which has made commuting on the roads of Pakistan highly unsafe. Dangerous road accidents are recorded on daily basis in different parts of the country, some of which prove to be extremely deadly, just like the recent Ahmedpur Sharqia incident where more than 200 people lost their lives and many suffered serious injuries.

Ahmedpur Sharqia Incident and the Recent Surge in Road Fatalities

Many recent fatal road incidents and especially the Ahmedpur Sharqia incidentraises serious questions about the credibility of the concerned transport authorities and institutions. The Ahmedpur Sharqia incident that took place just one day before the Eid-ul-Fitr in Pakistan on 25^th of Juneis one of the most horrific road incidents of Pakistan’s Transport History. It is an incident that took lives of hundreds of people and left many with disabilities for the lifetime. More than 200 people have reportedly died in this incident and many are still in a critical condition, fighting for their lives after suffering from burns caused by the fire that erupted when an oil tanker burst into flames at Ahmedpur East near Bahawalpur District of Pakistan. Such a massive loss of lives highlights the failure of many institutions of Pakistan and calls for a massive overhauling of the mindset of people who put their lives at stake to collect the oil leaking from the tanker.

Pakistan is facing serious road safety problems as the number of dangerous road accidents has increased incredibly in last few years due to a number of factors. From individuals to all concerned government bodies, everyone needs to contribute towards improving the road safety situation in Pakistan which is worsening day by day.

Let’s dig deep and find out what are the primary reasons for the consistent decline of the transport sector in Pakistan, which has accounted for fatal road incidents and caused fatalities all over the country.

Lack of Accountability in Major Institutions

The first and foremost reason for fatal road accidents in Pakistan is the lack of accountability in the transport sector of Pakistan,which allows different individuals, groups and private organizations to operate their illegal businesses without any fear of being held responsible. The oil supplying companies have manipulated this vulnerability of the system for years and feel no fear in violating the rules and regulations set by the government Pakistan for the supply and transfer of oil and other products in heavy tankers.

The tanker of Shell Petroleum that lost its balance in the Ahmedpur Sharqia incident was insured and even the 50,000-liter oil inside the tanker was insured so the incident didn’t really cause any financial loss to the company.  Accountability of such companies and proper investigation of such incidents is extremely important to make the accused pay for such criminal offences and improve the road safety situation for future.

Bad System of Issuing Driving License

One of the major reasons behind deadly road accidents in Pakistan is the poor system for issuing driving licenses to applicants. Anyone from anywhere can get a driving license on the basis of influence and money without even passing a driving test. The incapable and meritless system of issuing the license doesn’t really check the credentials and history of a driver and that gives a chance to individuals and organizations to manipulate the system with their unlawful activities.

In the Ahmedpur Sharqia incident, the investigation revealed that the driving license of the driver of the tanker was expired. Shell Petroleum has been fined with rupee 1 crore for this criminal negligence and asked to compensate the families of the dead with 1000,000 per person and those of injured with 500,000 per person. Had a proper monitoring system been in place to check the license of the tanker driver, the driver of the tanker would not have been allowed to drive and such an incident might have been avoided.

No System for Training of Drivers and No Proper Testing of Unknown Vehicles

As discussed earlier, there is no proper system for monitoring and accountability of oil supplying companies, which means there is hardly any inspection of the large vehicles carrying oil and other products. Moreover, the absence of any system to train drivers for driving effectively in challenging road and weather conditions further deteriorates the safety situation on the roads. Unknown commercial vehicles with no proper health certificates are a serious threat to the safety of commuters on the roads. The fitness certificate of the oil tanker driver in the Ahmedpur Sharqia incident was also fake. The failure of concerned departments to issue the fitness certificates to vehicles, especially the large commercial vehicles is one of the major reasons for fatal road incidents in Pakistan.

Poor Monitoring and Surveillance by Traffic Authorities

The lack of monitoring of vehicles on highways and poor road surveillance of traffic authorities is another major reason for road accidents in Pakistan.  The highway traffic Police has been declared as equally responsible for the Ahmedpur Sharqia incident in the investigation report as the traffic body couldn’t manage to stop people from collecting oil that was leaking from the tanker. The highway police also failed to identify that the truck was carrying more oil than its capacitywhile it was travelling from Karachi to Vehari and it’s a huge failure that eventually became a reason for a massive life loss.

According to the investigation report, it was a four-excel tanker that was carrying 50,000-liters of petrol while a 5-excel tanker is required to carry such a huge quantity of oil. According to reports, these oil tanker incidents happen everyday in Pakistan but hardly any of them gets reported like the AhmedpurSharqia incident because they don’t prove to be deadly. These incidents clearly highlight the lack of resourcefulness and inability of Pakistan’s major traffic bodies to check and monitor the health of heavy commercial vehicles on merit.

Old Roads and Poor Infrastructure

The road and transport authorities have failed to improve the road and transport infrastructure in Pakistandespite some horrific road incidents that have taken place in recent times.  Government issues funds for the improvement of the infrastructure but the miserable situation of roads in Pakistan hardly improves. The provincial governments show their interest in making new and better roads but the construction process, once started, takes too long to complete and that makes driving difficult asunder-maintenance roads demandthe extra attention of drivers. Drivers have to change their route or divert from lanes because of the construction underway and this is also one of the reasons why drivers feel frustrated and make fatal driving mistakes.

Lack of Awareness among drivers

One very important reason for fatal road accidents in Pakistan is the lack of awareness about traffic rules and traffic violations among the drivers. Generally, the drivers do not follow the road safety practices because they are not properly trained to drive and the monitoring of traffic authorities is too week to catch traffic offenders and charge them with heavy traffic fines. The vulnerable nature of the traffic system allows drivers to take traffic rules for granted and this is what leads to fatal road accidents.

The Way Forward

Ahmedpur Sharqia incident is one of the most horrifying incidents in the transport history of Pakistan, but it is surely not first incident of its kind. The incident has got the attention of media, government and legal bodies only because of the degree of life loss involved in this incident. The government should make the concerned transport and traffic departments learn from their failures and improve the accountability in the institutions as this is the only way to avoid terrifying road incidents from happening.

The road and traffic system needs to be completely revamped in order to improve the road safety levels and a gradual improvement in the system must be the target of authorities in the coming years to make Pakistan’s roads safer than ever for commuting.

By Syed Sarim

The Economic Survey 2016-2017 is full of praise for the Engineering Development Board (EDB) by counting various initiatives taken by the strong arm of Ministry of Industries.

The Survey came out in May 2017 otherwise if it was issued in June, it would have ignored the EDB as the EDB has been hitting the headlines of various print media in June regarding its closure over poor performance and creating hurdles for new entrants.

EDB is the apex government body under Ministry of Industries and Production entrusted to strengthen engineering base in Pakistan.
The Board focuses primarily on the development of engineering goods and services sector on modern lines enabling it to become technologically sound and globally integrated.

The Survey 2016-2017 counted various initiatives taken by EDB like setting up a stall with collaboration of Ministry of Industries in CPEC Summit and EXPO held at Pak China Friendship Centre in Islamabad in August 2016, Hannover Messe Germany 2016-2017 in which 32 prominent engineering companies participated. . EDB brought Pakistan’s best emerging companies to showcase Pakistan’s engineering manufacturing products at leading technology fair.

If the EDB is really an impressive government’s organization as praised by the Economic Survey then what has suddenly gone wrong that the Prime Minister Nawaz Sharif is now determined to close down the supporter and promoter of country’s engineering sector.
Surprisingly only Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has come for the rescue of EDB to some extent, otherwise the strong lobby of Japanese bike and car assemblers – Pakistan Automotive Manufacturers Association (PAMA) has kept a mum so far.

Why PAMA is playing safely and PAAPAM is taking keen interest to shield EDB is surprising as both have their interest and lobby in the EDB.
Chairman Association of Pakistan Motorcycle Assemblers (APMA), Mohammad Sabir Sheikh, offering a different view, said the EDB operates under the Ministry of Industries and Production but it is so powerful that it sometimes it looks “God Father” of its own Ministry.

He said the EDB has a good backup support from strong auto mafia of Pakistan especially three car assemblers and one Japanese bike assembler. The EDB supports these four players and in return the four players support the Board.

Sabir said these players use EDB in both ways. One is by promoting their interest and on the other hand creating hurdles through EDB in arrival of new entrants. Print media has surfaced the negative role of EDB in creating hurdles for new entrants.

He said these four players are also responsible in using various SROs in their interest on which EDB is one of the main promoters of supporting discounted SROs.

“I call these SROs as official smuggling order (SROs),” chairman APMA Mohammad Sabir Sheikh said.

Formed under a Prime Minister’s executive order, EDB has been notorious in introducing deletion programs under which no new industries were set up especially car industry and only few players enjoyed a complete monopoly for the last many decades, APMA chief recalled.

Then Tariff Based System (TBS) came in 2006 but the EDB kept amending SROs every year due to which the system became a failure and only few companies were benefitted, he said.

The PML-N government had given new Auto Policy 2016-2021 but in the last one year the EDB had suspended approvals for issuing new production certificates, IOR, permission for importing machinery for plants on zero penalty, APMA chief said.
“I think there is no need to keep EDB alive for the support of auto sector as this department is not entertaining the industry but is actually giving threat to small and medium units,” Sabir said.

The FBR should issue S Form directly to the auto sector for the import of CKDs, raw materials, assemblies, sub assemblies, components and sub components instead of issuing of IOR and production certificates/production quotas through EDB.

Some of the corruption can be gauged from the fact that the Ministry of Industries and the EDB had always been in forefront in supporting wrong practices of the old car and bike players. It had never taken any strict action against late delivery of vehicles ranging between three to four months to the buyers coupled with heavy premium being charged by the authorized dealers of local car assemblers. The EDB’s top brass had never raised their eyebrows over frequent increase in prices of cars and even two wheelers by the assemblers when demand soars.

Pak Suzuki has been rolling out decades-old models since its inception but the Ministry and the EDB had never enquired as to why Suzuki Mehran, Ravi, Bolan etc, which do not exist in the world, are still being assembled in Pakistan. There are no safety standards in these vehicles and consumers cannot access their price in other countries through website as these are only assembled in Pakistan.

For the last two to three years, Honda bikes have become extraordinary items which are not available in showrooms despite their record breaking production. Its authorized dealers are openly charging extra premium in order to make a quick buck. The dealers are giving 30-45 days time to the buyers who book Honda bikes since these are not readily available on spot sales.

Coming back to other vehicles, sources said that most of the new entrants, who have applied for Greenfield projects mainly are worried as the EDB officials are excusing them to deal their cases after reports of EDB closure.

Anxiety prevails among the new entrants as to which government’s department or relevant ministries will deal their new investment cases as no department has solid background of dealing auto sector previously.

They said so far the government has notified disbanding EDB but the officials of the EDB have stopped entertaining new investors as well as old players.
At a time when the fate of EDB hangs in balance, the Ministry of Industries recently granted permission to three new companies out of nine companies to set up their vehicle assembly plants. The cumulative investment to set up assembly plants under Greenfield investment by United Motors Private Limited, Kia-Lucky Motors Pakistan and Nishat Group stands at $372 million.

The Ministry is scrutinizing the documents of other applicants. The decision comes days after the Prime Minister’s Office decided to abolish the EDB on allegations of corruption and creating hurdles in the way of setting up new car manufacturing.
The government awarded the Category-A Greenfield Investment status to United Motors (Pvt) Limited for assembly/manufacture of vehicles covered in the exclusive contract agreement, says a notification issued by the Ministry of Industry. Similar notifications have also been issued to two other companies. These firms had submitted detailed business plans and relevant documents to the EDB for assessment.
United Motors would set up a plant with Chinese collaboration. The Nishat Group will be in partnership with South Korea-based Hyundai Company and Lucky Cement would also collaborate with another South Korean firm, Kia Motors.
It is surprising how the Ministry of Industries can grant approval directly as Auto Industry Development Committee (AIDC) is responsible in giving green signal to the new entrants. First the companies apply in the EDB and after proper scrutiny the EDB refers the case to the AIDC where all stakeholders unanimously approve or reject the case.

The 24th AIDC meeting saw request of Regal Automobiles for its green field investment incentives followed by brown field investment project by Daehan Dewan Motor Company Limited and green field investment project by Al Haj Faw Motors Limited on which the decisions were taken in the AIDC.

The AIDC had mentioned in the minutes that it had received application for investment from United Motors, Habib Rafiq Limited, Kia Lucky Motors Pakistan, Pak China Motors and Khalid Mushtaq Motors in green field projects. As per AIDC minutes no decision was taken on the above projects.
The new Auto Policy 2016-2021 had lured new players, barring European companies, due to tax incentives to new entrants. Sources said in one of the cases two Chinese assemblers are fighting for the rights of introducing a vehicle. Master Motors claims its right while its opponent also claims the right of Forland brand. EDB tried to solve the issue by seeking copies and relevant original agreements.

Surprisingly, when Forland products had already been closed down in China then why a leading Chinese vehicle assemblers is making hue and cry.
In China – many well organized assemblers have given the rights to other companies to make products. Anybody can enter into technical and manufacturing agreements with them.

Chairman PAAPAM Mashood Ali Khan said the government is shutting down the EDB and the decision was taken in a meeting in which stakeholders from the engineering industry were not invited.

Unfortunately, during the last two years tenure of the outgoing CEO EDB, the above strength of EDB was totally eroded by this specific individual, due to his incompetency, inadequacy and malfeasance. His maladministration exceeded all limits, as he bypassed the apex body, AIDC, and assumed dictatorial powers, he said.

The current problems of EDB therefore do not lie with the institution; rather the blame falls squarely on the shoulders of the then head of this institution. All credit goes to the government that it did not renew the contract of the then CEO of EDB. The next right thing to do should be the appointment of the right person for this vacant position of CEO EDB, he said.

Closure and shifting the responsibility of EDB, would derail the engineering industry, specially the auto sector, would lead to inefficiency in the government, and lack of expertise would further complicate the situation, leading to stoppage of investments in auto sector, especially the vending sector, he said.

He urged the government to take back the proposal of disbandment of EDB and a professional CEO EDB should be appointed, based on capability to handle such an organization. Powers of AIDC should be revived and formalized, to ensure a strong system of checks and balances on all EDB ongoing issues.

As per print media, Ministry of Industries and Production (MoI&P) is reportedly hesitant in removing acting Chief Executive Officer (CEO) EDB, Mirza Nasir Baig even after rejection of his summary as permanent CEO by the Prime Minister. The Cabinet Committee on Energy (CCoE) headed by Prime Minister has also directed the closure of this corruption-tainted organisation with immediate effect.

On June 9, 2017, Secretary to Prime Minister, Fawad Hasan Fawad wrote a letter titled “appointment to the post of Chief Executive Officer, Engineering Development Board (EDB)” to the Ministry of Industries and Production and explained the reasons for winding up EDB. The reasons included corruption and malpractices. The key section of the EDB which is involved in malpractices is tariff section, which is being headed by the present incumbent CEO for years. The Secretary to Prime Minister stated that during the meeting of Cabinet Committee on Energy (CCoE) chaired by the Prime Minister on May 29, 2017, it was observed that EDB was not performing any useful function, either in terms of regulation or promotion of engineering enterprises, adding that malpractices had become endemic in the Board, exploitation of business by its staff had become a norm. The Board has become a major impediment to improving the ease of doing business and creating an enabling environment for industrial expansion and economic development.

This exclusive article published in Monthly AutoMark Magazine’s July-2017 printed edition

The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has termed the decision to dissolve the Engineering Development Board (EDB) as a recipe for disaster for the country’s industry.

The above measure, if implemented, would gravely affect the industrialization targets set by Prime Minister Muhammad Nawaz Sharif and Finance Minister Muhammad Ishaq Dar, and set back the progress achieved by PML(N) government in the industrial base in general and auto industry development in particular.

Mashood Ali Khan, Chairman PAAPAM, flanked by former Chairmans Mr. Shariq Suhail, Mr. Munir K Bana and Mr. Aamir Allawal of the Association, expressed their shock on the discussion held in a recent meeting of the Cabinet Committee on Energy (CCoE) during which EDB was criticized for delaying approvals of CPEC power projects and supposedly involved in rampant corruption. This led to a directive from the Prime Minister to dissolve the organization since it was no longer able to serve any useful purpose

Interestingly, through an amendment made in the Finance Bill 2016-17, the requirement of EDB’s verification for availing duty exemption has already been removed for IPP projects above 25MW. Therefore, apparently,  the CCoE may have been wrongly briefed about ‘so called’ delay in processing of power project proposals by EDB. In fact, EDB’s role for processing cases of power projects over 25MW has been handed over to the Ministry of Water & Power. In the light of this scenario, the CCoE needs to review its uncalled for criticism and unjust position taken on EDB’s performance.

PAAPAM is a representative body of 400 auto parts manufacturers & vendors located all over Pakistan and provides direct & indirect employment to almost 3 million Pakistanis; it is also one of the largest “fully documented” sectors in the country. PAAPAM members have invested heavily for manufacture of automobile parts for global auto assemblers operating in Pakistan. Resultantly, localization of automobile components has touched a record high in the country with 55%~70% of parts used in passenger cars being manufactured locally

At a press briefing held at a local hotel in Karachi on 6^th July 2017, Chairman PAAPAM, Mashood Ali Khan said that the auto industry has been engaging with EDB ever since its inception in 1995. Over these 20 years, there has never been a single scandal of corruption or malpractice at the EDB. On the contrary, the organization has played a major role in nurturing the domestic auto industry and promoting the growth in localization of auto parts in Pakistan (and saving valuable foreign exchange for the country).

In 1995, hardly 10%~15% of parts for passenger cars were produced locally. Today this figure has touched 70%. Similar trends were witnessed in case of motorcycles, trucks, buses & tractors. The industry was able to achieve these milestones only due to diligent implementation of deletion programs and tariff based systems by the EDB

The areas for which EDB needs to be complimented include strict implementation of deletion programs in the 1990s, preparation of a WTO-compliant Tariff Based System & formulation of the first auto policy in 2007, ensuring continuous growth in localization of automobile components, diligently monitoring that locally produced parts are not  imported at concessionary rates of duty, revival of trucks/buses manufacturing by controlling smuggling/misdeclaration, preparation of the second auto policy in 2016 and efficient management of auto sector regulations (including SROs 655, 656 & 693)

Chairman PAAPAM pointed out that unfortunately, since 2010, the Government has failed to give due importance to EDB or the engineering sector. EDB operated without a CEO for almost 3 years between 2012~2015. Finally, once again, EDB is without a permanent CEO since March 2017. How can one expect any organization to remain functional without a full-time & competent Chief Executive Officer

Mashood commented that since 2010, the Government did not take any steps for building capacity of this institution to serve the engineering sector. Instead, EDB was kept under-staffed and under constant pressure to operate with limited resources

PAAPAM officials assured the Prime Minister that there is no merit in the corruption allegations being levelled against EDB officials. Our members can vouch that they have not experienced any instances of corruption at any level in EDB, although all of them have an ongoing working relationship with the organization ever since its inception

Therefore, it would be an unwise step for a pro-industry Government, led by Prime Minister Mian Muhammad Nawaz Sharif, to move towards dissolving an organization on the basis of hearsay spread by groups with vested interests. Instead, considering that Pakistan’s economy is at a take-off stage, it would be prudent to appoint a professional CEO at EDB and provide it with the necessary resources to ensure its role as a catalyst for growth of the domestic Engineering Industry.

PAAPAM Chairman particularly pointed out that the auto industry is  passing through a critical phase, where the industry has bounced back and new entrants have entered the field. EDB is fully geared to assist the new entrants in meeting the government’s auto policy framework and also monitor and report to the federal government on their achievements from time to time.

PAAPAM appealed to the Honorable Prime Minister that, inspite of his hectic schedule, he may kindly grant a hearing to the Association and allow them an opportunity of explaining and clarifying the grave issues involved, so that he may be fully apprised of the facts and figures. We assure the Prime Minister that, we have full faith in him that he will not take any decision which could be detrimental to the interest of this nation, specially without granting a hearing to all the affected parties.

We look forward to an earliest meeting with the Prime Minister.

Mashood Ali Khan, Chairman of the Pakistan Association of Auto Parts and Accessories Manufacturers (PAAPAM), met with the Chairman of Pakistan Industrial Development Corporation (PIDS), Iqbal Tabish, to discuss the extortionate prices of land in the Bin Qasim special economic zone. He mentioned about how automotive manufacturers are present in the region, but there are no auto part assemblers and manufacturers there. In addition to that, according to the NIP, Bin Qasim Association of Trade and Industry is to allocate 20-25 acres of land for Small and Medium Enterprises (SMEs) of the automotive industry, but due to the extremely high prices (of almost 18 Million Rupees), many SMEs cannot afford to make such high capital investments.
PAAPAM has urged the PIDC to reduce these land prices, so that new producers may come in and set up their manufacturing plants, while already-present assemblers can make use of the opportunity to make this zone an area where all functions of the auto industry are present. The PIDC Chairman has assured that the subject would be considered in the corporation’s next board meeting.
Additionally, PIDC has requested a proposal from the PAAPAM on how the association would like to run the Automotive Testing and Training Centre, which has been present as a ghost facility for a long time, having been left abandoned soon after construction. PIDC wishes that members of PAAPAM take ownership of the facility, and use it to improve the skill set of labor and quality of products associated with the automotive industry of the land.
by AutoMark Magazine

After a hiatus of almost two and half years, the economic co-ordination committee of the cabinet gave the go ahead to the automotive development policy 2016 – 21 in the month of March 2016. Now almost one year has been passed but no material / significant result or achievement can be seen after implementation of this policy on the horizon of automobile industry of Pakistan.

The Twenty Fourth meeting of the Auto Industry Development Committee was held on 13th April 2017 and its minutes were confirmed on May 05, 2017, by EDB, the issue discussed and decision made during this meeting is also indicate the incapability of new auto policy in delivering solutions for the challenges being faced by the automobile industry of Pakistan.

Primary objective of the policy was to bring new investment which could boost the competition among the players, resultantly consumer shall get due benefits.The Government was hopeful that new policy will attract the European Car maker. However definition of medium knocked – down unit – MKD was not included into the policy so leading European Cars maker i.e. Fiat, Audi and Volkswagen scrapped their plan to enter in this market. French Car makers Renault was the first to announce its plans to invest USD$100 million in Ghandhara Nissan Plant to bring its brand into the country’s market but reliable source disclosed that Renault has stopped all activities in relation to Pakistan ventures due to some unknown reasons.

Under automobile development policy 2016-21 the following applications were submitted for approval.

1. Request of M/s. Regal Automobile Industries Limited for Green Field Investment.
2. Request of M/s. Dewan Farooque Motors Ltd for Brown Field Investment.
3. Request of M/s. Al Haj Faw Motors (Pvt) Ltd for Green Field Investment.

M/s. Regal Automobiles Industries Ltd (RAIL) applied for the Greenfield Investment incentives under New Investment Policy of ADP 2016-21 for establishing auto assembly plant in Lahore for the production / assembly of light commercial vehicle (LCV’s) and Mini Van / Bus under Technology Transfer Agreement with DFSK Motor Co. Ltd, a subsidiary of Dongfeng Motors Corporation, China.

Further, it was informed that M/s. Tayyaba Motors (Pvt.) Limited, approached EDB claiming that their and M/s. RAIL’s principal is same i.e. DongfengSokon and DFSK, even their factory address and vehicles offered by both of them are physically same with the only difference of label / logo. The firm therefore claimed that M/s. Regal Automobile Industries Ltd., cannot avail the concessions of Greenfield Investment under ADP 2016-21. However, M/s. Regal Automobiles denied. The committees decide that both the firms shall provide information of design patents from their principals and other related information facilitating EDB to evaluate and decide, accordingly.

The Engineering Development Board (EDB) is the apex government body under Ministry of Industries & Production entrusted to strengthen engineering base in Pakistan. EDB focuses primarily on the development of engineering goods and services sector on modern lines enabling it to become technologically sound and globally integrated. On the other hand committee decision is purely of commercial nature. In my point view EDB is not capable to take such type of decision independently.

It was learnt by reliable source that ministry if industry is not convinced with the contention of DFML that their plant was operational beyond the cutoff date of July 2013, exactly DFML plant was operational during September 2013 to February 2014. So the approval for brown field investment category cannot given. It is only possible through amendment in the policy, since it is mentioned in the policy that it can only be reviewed after two years, while it is only in its first year of implementation so ministry could not support any change in the policy.

The request of M/s. Al Haj Faw Motors for the green field category was also turned down with the same reason. Furthermore some more new companies are establishing their assembly plants and some only announced their intention to enter in automobile assembly business under ADP 2016-21, keeping in view the disputed case of DFML and RAIL, we feel that responsibilities of EDB are increased.

Procedure for approval under ADP 2016-21 may be strengthen. Stringent documentation for application process may be adopted. Questions / details of commercial nature may be asked by the new entrant. It may be noted that RAIL assembly plant is near completion and DFML has already imported CKD kits for Shahzore assembly from Dehan Laos. It seems that both companies could not start their assembly operations due to these confusions / delays.

According to our information one of the new entrant from Lahore is planning to assemble Chinese Alto which is the carbon copy of Pakistani Suzuki Mehran. We feel that its application shall also be challenged by Pak Suzuki Motors on the same ground and reasons, claimed by Tayyaba Motors in case of RAIL application.

In view of the above scenario we suggest that EDB may call an emergent meeting of AIDC also request to State Bank, SECP, Trade Mark Authorities, Intellectual Property Organization of Pakistanetcetc for the participation in this meeting. This meeting should have one point agenda i.e to chalk out detailed and foolproof procedure for the approval of application under ADP 2016-21 for the new investment in automobile sector.

This exclusive article, published in Monthly AutoMark Magazine’s June-2017 printed edition
by Anwar Iqbal