Import of CNG kits: Japan voices concern over ban

ISLAMABAD: Japan has reportedly expressed serious concerns over a ban on Compressed Natural Gas (CNG) kits for cars and discrepancies in Auto Mobile Investment Development Plan being implemented by the Engineering Development Board (EDB). These issues were raised by the Japanese Ambassador to Pakistan Hiroshi Oe, who called on Commerce Minister Makhdoom Amin Fahim here on Monday.

"Though the ambassador has formally invited Makhdoom Amin Fahim to attend Pakistan-Japan business dialogue being held on 21-23 March in Tokyo, he specially discussed local issues like ban on import of CNG kits and AIDP," official sources told the Business Recorder.

Pakistan is unhappy with Japan for not implementing trade related decisions taken in the past like export of mangoes, etc whereas Japan is not pleased either over FTA between China and Pakistan which according to Tokyo hurt its exports to Pakistan.

An official statement says that the minister and the ambassador discussed various dimensions of trade relations between the two countries. The meeting discussed the potential and possibilities of Pakistan Japan Business Dialogue.

Ministry of Commerce led by Commerce Minister Makhdoom Amin Fahim including the Pakistani business community will participate in the said dialogue.

The minister hoped that the dialogue would open new horizons in Pak-Japan trade relations. Secretary Commerce, Zafar Mahmood and Chief Executive, TDAP would also accompany the minister. Japanese ambassador appreciated Pakistan's efforts for boosting trade relations with India. He said that current Pak-Indian trade agreements would make this region more stable and prosperous.

According to the statement, the meeting deliberated on the automobile sector of Pakistan and Japan's contribution in this sector under Auto Mobile Investment Development Plan. Different opportunities and challenges in automobile sector were discussed in detail. The pertaining issues faced by automobile industry in Pakistan also came under discussion during the meeting.  The ambassador showed some concern over the government's decision to ban CNG kits in Pakistan. The minister assured the ambassador that his concerns would be addressed and every measure to counter any discouragement faced by Japanese investors in this sector would be supported.  The meeting also discussed the trade opportunities during the visit of Japanese business delegation to Pakistan in "Expo Pakistan 2012", which is scheduled to be held in October. Japan had opposed flexibility in import of used cars when Mir Hazar Khan Bijarani was the Minister for Industries and Production.-MUSHTAQ GHUMMAN