KARACHI, Feb 7: Minister for Industries and Production, Liaquat Ali Jatoi has said that the car assemblers would cut prices.

“Car prices will come down soon,” the minister said at a dinner function of the Karachi Chamber of Commerce and Industry (KCCI) on Thursday without mentioning any specific time period in this regard.

The atmosphere of the function got a bit charged when the chairman of All Pakistan Motor Dealers Association (APMDA), H.M. Shahzad informed the minister about customers’ grievances of facing inordinate delays in getting their booked cars in time. As a result of shortage, cars are being sold on premium.

Shahzad informed the minister that the premium price of Toyota Corolla (petrol) has gone up to 150,000 per car from Rs100,000 soon after your visit to the Indus Motor Company (IMC) last week. The premium on diesel Corolla has reached to Rs200,000 while premium on Mehran, Cuore, Honda City and Civic is Rs42,000, Rs 45,000, Rs50,000 and Rs80,000 respectively. He said that IMC had booked 16,000 cars on 100 per cent payment from customers. Similarly 12,000 cars had been booked by Honda Motors.

Jatoi defended the local assemblers particularly IMC, saying there will be no shortage of cars in future as the Corolla makers would start double shift from March 1. The company will produce 94 cars per day from March from the current production of 73 units per day.

“How many cars you want. Give me two days and I will arrange delivery of new Corollas,” the minister responded to the query of APMDA chief who said that he had a list of 25 people who had booked Toyota and were waiting for delivery.

Jatoi said there is no question of allowing import of used cars in Pakistan as any decision in this regard would render thousands of people jobless besides resulting in loss of billions of dollar investment made by local assemblers and vendors.

“If assemblers fail to deliver cars in two months, the government has bound the car makers to pay mark up at bank interest rate,” he said.

He said that Toyota has achieved 48 per cent while Suzuki Mehran’s deletion level has reached to 60 per cent.

He said the government intends to strengthen the base of manufacturing so that the dependence on import of parts could be reduced and assemblers could start export. He said spare parts import cost $700 million per annum.

On other issues, he said the setting up of an advisory board in the Ministry of Industries and Production is in final stages and president of every chamber will be made its member so that problems relating to business and trade could be resolved in an effective manner.

He said the 60 per cent rationalization of tariff has been done and the government aims to give more incentives and packages to further rationalize tariffs. Prime Minister Jamali has already asked the ministry to bring new policies and eliminate red-tape, barriers and bottlenecks in order to attract new investors and foster the pace of industrialisation.

He said the commencement of ‘one desk operation’ is in final stages. An investment desk is also being set up at all international airports.

He said the government wants to increase the production capacity of Pakistan Steel to three million tons per annum from current 1.1 million tons in various phases. He said Steel Mill has come out from the red as its sales has touched to Rs10 billion in July-December 2002-2003. In January 2003 alone, sales have risen to Rs2.63 billion. He said that the loss-making Javedan Cement and Thatta Cement have made profits of Rs33 million and Rs13 million.

Earlier, president KCCI, Shaukat Iqbal urged the minister to announce an authentic industrial policy in view of the changing scenario of trade liberalization under WTO and maintain consistency in their policies in order to lure more foreign and local investors.

APP adds: Talking to heads of the pharmaceutical firms, Federal Minister for Industries and Production, Liaquat Ali Jatoi, has said that healthcare as well as provision of medicines at affordable price is the social and political responsibility of the government, and for this every possible facility would be provided to the pharmaceutical firms.

Kamran Mirza led the heads of the pharmaceutical firms during the meeting, which took place here at the PIDC House on Thursday.

The Minister was of the view that as compared to many parts in the world, the pharmaceutical industry in Pakistan is in a better position and making progress.

He said that the policy the present government has adopted for the promotion of industries would also benefit the pharmaceutical sector as well.

Jatoi believed that increase in production would help bring down the prices of medicines.

He assured the pharmaceutical firms his full support to help resolve their problems.

The Minister also urged the pharmaceutical companies to maintain the standard of their medicines and make available to the people at lesser prices.

The delegation of the pharmaceutical firms appreciated the policies of the government and assured the Minister for increase in production and bringing down the prices, the statement added.