Engineering Development Board (EDB) has is said to have altered minutes of Auto Industry Development Committee (AIDC) aimed at giving "special" favour to one of the automakers, well-informed sources told Business Recorder. "The minutes communicated by EDB of 24th AIDC are quite controversial. Interestingly, with respect to agenda four "request for brownfield investment under Automotive Development Policy 2016-21 by M/s Dewan Farooque Motors" it is clearly mentioned that house recommended unanimously, "Their case may be processed without change in policy". It is also recorded that the FBR representative opposed any change in policy. However, the minutes are totally contrary to the recorded decision," the sources added.

Strangely, the decision states that "keeping in view the spirit of the existing policy for revival of closed down units, the AIDC unanimously supported the case of M/s Dewaan Farooque Motors for suitable amendments in the ADP 2016-21 for availing benefits under the Brownfield category".

According to sources, reason for the decision can be traced to another agenda which relates to Al-Haj FAW's demand for what was not possible in the present policy framework. AIDC could not and did not support a change in the policy as it was strongly felt that continuity in policy was more important than temporary loss or benefit for some players in the short run.

When policy was announced all OEMs agitated that it did not allow any benefit to the existing players if they brought in new variants. It was felt that existing players were being discriminated against new entrants. Eventually, all OEMs sans Pak Suzuki agreed that "A Policy was better than No Policy". It was decided to support continuity of the policy. So it has been a consistent stand of the industry. It remained the view in the AIDC too, the sources continued.

Al-Haj FAW proposal to get Green Field status for its new product did not receive any support in the AIDC as it required a change in policy. The decision of the AIDC is now going to be turned on its head to reflect a general consensus in the AIDC for supporting a change in policy. This actually is exactly contrary to the industry and AIDC sentiment.

The Chief Executive of Al-Haj Faw, Al-Haj Shah Jee Gul Afridi was recently seen venting his anger at Finance Minister, Ishaq Dar, and accusing him of destroying his business by supporting the cause of tribal people. He also threatened to move the court once the minutes of AIDC are issued.

"Dar changed the auto policy prepared by the MoI&P just to hurt his business," claimed Mr Afridi. The sources said, the member AIDC from FBR argued that the issue had not reached finality between Ministry of Industry and FBR and only after that should it be brought to AIDC. Representative of Atlas Honda said the investment policy for motorcycles was based on new technology and was distinctly different from car policy. It reflected the difference between the size and level of maturity of two distinct industries.

Ministry of Industries and Production is expected to submit a summary to the Economic Coordination Committee (ECC) of the Cabinet for suitable amendments in the Auto Policy.

Copyright Business Recorder, 2017