Cost Accountants to determine cost of locally-made cars and tractors

ISLAMABAD (September 13 2003): Secretary Industries and Production, Javed Ashraf Hussain, on Friday said government has engaged Finance ministry's cost accountants to work out actual cost of the locally manufactured cars and tractors.

The cost worked out by the accountants would be the part of the recommendations of federal cabinet task force, suggesting possible reduction in the prices of cars and tractors.

Talking to Business Recorder, Javed said: “the task force was examining all the aspects in depth and a detailed report would be submitted to the federal cabinet before the expiry of the current month”.

He maintained that the Pakistan Auto Manufacturers Association's (Pama's) report was not made available to the task force for its Friday's meeting.

“We have extended the deadline for the Pama to Monday to submit its detailed report on production cost, backlog and causes of delay in delivery of cars and tractors.”

The task force had sought various explanations from the Pama after its first meeting early this week.

The car manufacturers' association was to furnish desired information by September 11.

When contacted, Pama Chairman Kanwar Idrees told this correspondent from Karachi by phone that the task force was provided with all the required information for its consideration.

Kanwar ruled out any possibility of reduction in auto prices as a result of task force exercise.

In his opinion, prices of all locally made popular cars and tractors brands were highly competitive and manufacturers can hardly afford any reduction.

He dispelled the impression that cars in Pakistan were costlier than other regional countries, particularly India.

Kanwar said that difference in car prices between India and Pakistan was due to CKDs import.

According to the Pama Chairman, India imports only 5-10 percent of CKDs for its auto industry, whereas Pakistan's ratio ranges between 40 to 70 percent.

The government is working on a plan to cut down cars and tractors prices and minimise delivery schedule for the benefit of the buyers and for the same reason the federal cabinet had constituted a high level task force with Industries and Production Secretary as its convenor, he said.

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