ECC agrees to cut motorcycle tariffs

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ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet met on Tuesday with Federal Minister for Finance and Economic Affairs Dr Abdul Hafeez Shaikh in the chair and agreed to gradually bring down tariff regime for the motorcycle industry in a way that local industry would not be impacted.

 

 

 

In the next meeting, it will decide how much tariff should be reduced keeping in view the local industry’s interests. “In the wake of time constraints, the meeting could not take up other items, which is why it was decided that the ECC would again meet today to decide the fate of other projects including the import of LNG,” said an official who attended the meeting.

 

 

 

The ECC is likely to clear $900 million rolling guarantees today for the import of LNG which will be dedicated to the power sector. According to Ministry of Petroleum and Natural Resources officials parleys were underway with two international firms to purchase LNG from its sources in the United States at the Henry Hub prices that are currently much lower than the Middle East and European markets because of LNG excess in the North American region.

 

 

 

As per the press release issued by the Ministry of Finance on submission of an earlier summary on the protection of the motorcycle industry by the Ministry of Commerce, the ECC in its meeting had decided to constitute a committee comprising Chairman BoI, deputy chairman Planning Commission, secretary Ministry of Commerce and secretary Ministry of Industries for devising a presentation for the ECC.

 

 

 

As per directions of the ECC a detailed presentation was given by secretary commerce focusing on different aspects including production capacity, category wise growth rate, types and details of motorcycle manufacturer, current tariff structure and barriers for new entrants in the Pakistani motorcycle industry.

 

 

 

The ECC held a lengthy discussion on the subject and analysed different aspects of the said proposal. After detailed deliberation, the ECC approved in-principle a gradual decrease in tariff for the motorcycle industry in Pakistan in order to attract foreign investment in the sector.

 

 

 

Shaikh said that in the process it must be ensured that the local motorcycle industry is not affected and that a level playing field is provided to all the stakeholders.

 

 

 

The exact figure for rate of tariff reduction will be determined in the next ECC meeting. Furthermore, it was decided that new entrant’s policy will be discussed in forthcoming meetings.

 

 

 

The ECC also discussed economic indicators which were presented by secretary finance. It was informed that CPI, SPI and WPI remained at 9.1 percent, 8 percent and 7.6 percent respectively in July-September 2012.

 

 

 

Iron and steel products showed 20.57 percent positive change in growth in the area of large scale manufacturing. Remittances stood at $2,464 million. The ECC was also updated on the implementation status of the decisions taken by the committee.

 

 

 

The committee was informed that 751 decisions were taken in 82 meetings of which 683 decisions were implemented.

 

Courtesy: The News


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