Motorcycle parts suppliers: concerns voiced over non-payment by assemblers

Vice Chairman Paapam, Syed Nabeel Hashmi has cautioned various Pak-Chinese motorcycle assemblers that their continues default on payments to its member companies supplying parts and components can lead to a very serious collapse of the industry.
At a meeting convened for this specific purpose at Paapam headquarters in Lahore, Hashmi cited extraordinary production increase in the motorcycle sector, but registered the association's annoyance at numerous motorcycle assemblers who are wilfully holding huge amounts of payments against the components supplied to them months ago. He said the financial position of Paapam members is getting very serious.
He said that the association is pondering over the possibility of involving Engineering Development Board and Federal Board of Revenue to assist in resolving this issue as even the input sales tax payment, made on behalf of the government by vendors, has been utilised by these OEMs and yet they have not been paid.
Papaam members also strongly agitated against the increasing trend of creating multi vendors for single components, which is the main reason for motorcycle OEMs misusing the suppliers. Hashmi noted that although creating capacity and new vendors is healthy for competition, yet large assemblers have no right to use their supplier's money as their working capital.