Allowing import of five-year old vehicles: Japanese investors tried to influence BOI to revert decision: Mandviwala

Japanese investors in auto sector have asked the federal government for an immediate remedial action against the decision of giving age relaxation up to five years on import of used vehicles, which they considered against their interest.
In an exclusive talk with Business Recorder, State Minister/Chairman Board of Investment (BOI) Saleem H. Mandviwalla confirmed that Japanese officials and representatives of auto industry approached and tried to influence the BOI to revert the decision of allowing import of 5 years old vehicles under the personal baggage, gift and transfer of residence schemes.
The minister said that the BOI always supported age relaxation in the import of used cars in a bid to discourage the monopolistic trend shown by local car manufacturers for the last many years. The import of five-year-old vehicles would impact in shape of rationalising the market prices.
He said, "If five years' old Japanese car is given preference over the locally manufactured car, this means local manufacturers need to bring improvement in quality and performance of their product". The minister said that it was a clear indication that automobile industry should review the quality standards of their vehicles.
To a question he said that it is wrong to say that most of the policies of our auto sector are being influenced by Japan. "Majority of the policies of auto sector are being governed by the local partners of Japanese companies," he revealed. The minister maintained that the Japanese company, Yamaha (Pvt) Ltd is being replaced by Honda Atlus Company due to the monopoly of local industry that was not ready at all to let Yamaha invest in Pakistan with more modern technology and innovation. "The basic policy of the local manufacturers forbids the new entrance," he added.
He further said that the Board had moved a summary proposing 5-years' relaxation in the age limit for the import of used cars on commercial basis but ministry of finance and State Bank of Pakistan declined on the ground of limited foreign exchange for the scheme. He said that the lobbyism had penetrated deep into the automobile industry otherwise, 5 years age-relaxation on import of used cars would not have any bad impact on the local production.
Commenting on the agreement of PIAC and Turkish Airlines, he said this move had complete backing of federal government. He said that they had entered into an agreement with the Turkish Airlines that it would cooperate with PIA on broader scale. PIA as an isolated airlines can not survive in global environment. In order to run its business smoothly, it would have to cooperate with the other air lines as well. "We have given the most of the air traffic to Emirates, Itehad and Oman Airlines but they are not adding even a single rupee to the national exchequer, "he added.