August 31, 2007	Friday	Sha'aban 17, 1428

ISLAMABAD, Aug 30: The menace of under-invoicing was badly affecting the local manufacturing of bicycles.

This was stated by Chairman Pakistan Cycle Industrial Co-operative Society Ltd (PCICS) Mohammad Akram Sheikh in a meeting with general manager (Policy) of Engineering Development Board (EDB) on Thursday.

The chairman said that reduction in duty had increased the import of cycles in the country but the local industry was competing. He said that various parts used in making of cycles were being imported at much below the cost of its single component, which was badly affecting the local manufacturing.

Mr Sheikh said that Pakistan’s cycle industry had bean given new lease of life with zero rated sales tax in the current budget. He added that the sale of their products was increasing since then and currently, it has reached 2,000 units against 500 in June 2007.

The chairman highlighted the corporate social responsibility policy of the organisation and said that 20 blind workers were provided jobs in the factory and a full-fledged hospital was serving the people of the area without any charge.

Meanwhile, Chief Executive Officer of Millat Tractors Sohail Rana briefed the visiting EDB officers about the latest developments. They were informed that in the last financial year 27,000 tractors were produced, which was a landmark in the history of tractor industry.

He advocated long-term policy with emphasis on environmental challenges, as the global market has already moved to greener engine manufacturing.

Talking about other challenges, he listed zero rated import of tractors, weak base of vendor industry and unpredictable supply of raw material from steel mill. He proposed the establishment of a raw material bank to ensure supplies to plants on affordable price.