November 21, 2007	Wednesday	Ziqa’ad 10, 1428

RAWALPINDI, Nov 20: The Engineering Development Board (EDB) has taken serious notice of the problems being faced by manufacturers of automotive parts, and on Tuesday it asked the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) to prepare and submit a comprehensive report for streamlining the supply of raw material to them.

The PAAPAM will submit its report to EDB within a fortnight to indicate its demand of raw material, like steel billets of SAE 1045/1044 grades, foundry grade pig-iron and hard coke used for manufacturing of auto parts and accessories.

The report will also suggest a system for uninterrupted supply or raw material, thereafter, the EDB will examine it before transmitting the report to Pakistan Steel for a favourable consideration and necessary action.

These measures were taken at a meeting convened by the EDB at the request of PAAPAM to resolve the issue of short supplies and to develop a mechanism to ensure supply of raw material to the consumer.

EDB General Manager S. M. Adil Shah chaired the meeting which was attended by a four-member delegation of the Association, headed by its chairman as well as representatives of Ministry of Industries and Production and Pakistan Steel.

During the course of discussions, PAAPAM chairman informed that the raw material required by auto parts manufacturers were available in the open market at premium prices which adversely affects the cost of production and was resulting in uncompetitive product prices in the international markets.

He further said that under the prevailing situation it would also not be possible to meet the production targets of cars, tractors and motorcycles.

He also suggested concluding a memorandum of understanding with Pakistan Steel ensuring regular supply of raw material. The representatives of PS suggested that a system should be devised so that the raw material required by them can be streamlined.