ISLAMABAD: The Engineering Development Board (EDB) has sought cost structure from the auto industry and its concerns to raise them at an appropriate forum.

Presided over by the Chief Executive Officer (CEO) EDB, Raza Abbas Shah, a meeting discussed “Implementation of Automotive Policy (AIDP 2021-26)”.

The representative bodies of the OEMs and the vendors, PAMA and PAAPAM were present in the meeting.

The sources said, meeting turned into a discussion forum on the price control notifications issued by the MOI&P. SRO 1062 and SRO 1065 received much criticism.

Mohammad Faisal, CFO KIA Motors, a more successful company among the new entrants, said that actually the government had shown them green pastures and once the new entrants had come in, the doors of the cage have been shut.

Faisal said that their company had invested $200 million as equity in the project.

They had not increased prices but the steep price increases in metals, utilities and adverse rupee dollar parity were placing a lot of strain on their resources.

Abdul Rehman Aizaz, chairman PAAPAM said that the steel prices were increased only this morning and that they have been increasing every month regularly.

Since January 2020, the prices have increased by almost Rs100 per kg.

“Why can’t the government control prices of inputs while it tries to controls the prices of the finished products?” he asked.

“If the prices of final products are not allowed to adjust to accommodate the price escalation in inputs, then vending industry will not receive price adjustment and our industry will be destroyed,” Rehman added.

He was of the opinion that the vending industry does not have the muscle to absorb cost increases for two to four months.

This measure may sound a death nail for the vending industry.

Raza Abbas asked the industry to share its cost structure as demanded through the letter from the Secretary Industry, and also share its concerns in writing, so that these can be raised at an appropriate level.

Copyright Business Recorder, 2021