LAHORE: The local tractor industry has resented the Engineering Development Board’s (EDB) permission to Minsk Tractor Works Pakistan Ltd to assemble Belarus model MT 510 and import spare parts duty free.

The 9th Auto Industry Development Committee (AIDC) meeting held on June 9, 2016 granted the status of new entrant to Minsk Tractor and also approved its localisation plan.

Terming it as a violation of the Auto Policy 2016-2021, the local industry urged the federal government to review decision as incentives to import tractor parts at zero rated custom duty has already generated uncertainty for future of local manufacturers.

One of the representatives told Dawn that the tractor industry has raised many questions regarding the timing of the AIDC and the motive behind this move, adding the Sindh tractor scheme that was primarily availed by MTW Pak Pvt Ltd is a subject of NAB inquiry.

“Why wasn’t meeting held earlier to deliberate on the ramifications of this move on the local tractor industry? And why are approvals being sought for new entrant status to MTW under the outgoing auto policy and not the new one, despite reservations from the industry. The EDB CEO was also invited to Belarus earlier in the year to discuss business modalities with MTW”, the industry expert questioned.

The EDB CEO also reportedly turned down the request by the tractor industry to postpone the meeting.

He said many parts for this tractor were developed locally when this brand was being assembled in Pakistan by Fecto Belarus. “What is the wisdom of letting the company import these parts when local capacity is available to produce them?”

The prices of the local tractors are competitive making it very difficult for the world players to sell their products in the Pakistani market, he added.

Published in Dawn, July 27th, 2016