Vehicle import safety standards: Confusion among ministries about implementation has cost kitty Rs125bn?

ISLAMABAD: Confusion among different key ministries over the implementation of vehicle import safety standards has allegedly cost the national exchequer an estimated Rs125 billion in revenue loss over the last seven months.

This was stated by Senator Faisal Vawda during a meeting of the Senate Standing Committee on Finance and Revenue, chaired by Saleem Mandviwalla.

Admitting lapses in handling the matter, Minister for Science and Technology Khalid Magsi told the committee that the issue had been “mismanaged” by his ministry. “When we realised a mistake had been made, we withdrew the decision,” he said.

Federal Finance Minister Muhammad Aurangzeb attended the meeting along with senators, government officials, industry representatives, and stakeholders from multiple sectors. The session focused on key budgetary proposals, economic reforms, and measures aimed at promoting investment, enhancing competitiveness, and supporting sustainable economic development.

The committee called for restoring the authority for pre-shipment inspection of imported vehicles to the Ministry of Science and Technology.

The issue sparked heated exchanges during a meeting of the Senate panel, where lawmakers and government officials questioned the legal framework governing pre- and post-shipment inspections of imported vehicles and accused certain ministries of attempting to create monopolies benefiting a handful of companies.

Vawda alleged that the Ministry of Industries had exceeded the mandate granted by the Economic Coordination Committee (ECC) by retaining powers that should have been delegated to the Ministry of Science and Technology. He said disagreements among various ministries over the vehicle safety standards notification had delayed imports, resulting in a revenue loss of Rs125 billion.

“The standards were structured in a way that would have benefited only a few companies and forced small importers to pay unofficial charges to bring vehicles into the country,” Vawda claimed, urging the government to immediately suspend the controversial pre- and post-shipment inspection notifications.

Secretary of the Science and Technology informed the committee that the authority for pre-shipment inspection was initially assigned to the Pakistan Standards and Quality Control Authority (PSQCA), after which the ministry selected two companies to carry out inspections. However, the ministry later withdrew its no-objection certificate (NOC), prompting calls for a fresh review of the entire process.

Admitting lapses in handling the matter, Minister for Science and Technology Khalid Magsi told the committee that the issue had been “mismanaged” by his ministry. “When we realised a mistake had been made, we withdrew the decision,” he said.

Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan said the relevant law was still being drafted and would ultimately require parliamentary approval. He defended the government’s actions, arguing that pre-shipment inspection was necessary for safety compliance while post-shipment inspection was intended to prevent the entry of non-compliant vehicles.

The discussion turned contentious when Vawda accused the government of framing legislation that could establish monopolies. He also criticised what he described as excessive reliance on cabinet decisions, remarking that he had opposed a cabinet decision in the £190 million case and that no institution should be treated as beyond scrutiny.

Finance Minister Muhammad Aurangzeb told the committee that since the Ministry of Science and Technology had withdrawn its NOC, the matter should be reconsidered. The committee subsequently directed that the summary be referred back to the Ministry of Commerce for review.

Later, speaking to reporters, Vawda welcomed the decision to return pre-shipment inspection powers to the Ministry of Science and Technology and claimed the committee had prevented a potential Rs150 billion loss linked to used-vehicle imports.

Vawda urged Prime Minister Shehbaz Sharif to assign responsibilities to competent professionals, saying policymaking should promote transparency, competition, and consumer protection rather than benefiting a select a few stakeholders.

The meeting further reviewed developments relating to vehicle standards, industrial regulations and commercial vehicle imports. Officials informed the committee about ongoing efforts to strengthen regulatory frameworks, improve safety standards, and align national practices with international benchmarks. The committee emphasized the importance of facilitating business activity, promoting transparency, and ensuring effective implementation of regulatory policies.

The committee was also briefed on ongoing work relating to solar, mobile, auto, and battery sector policies. Officials informed members that efforts are underway to develop comprehensive policy frameworks aimed at encouraging investment, promoting technological advancement, supporting local manufacturing, and creating new economic opportunities.

Following detailed deliberations on various proposals and amendments under the Finance Bill 2026-27, the committee made several recommendations aimed at promoting economic growth, facilitating businesses, strengthening industrial competitiveness, and enhancing public welfare.

The Senate Standing Committee on Finance and Revenue will continue its review of the Finance Bill 2026-27 in subsequent sessions as part of its ongoing commitment to ensuring effective legislation, fiscal responsibility, and sustainable economic development.

Copyright Business Recorder, 2026