Monday, January 4, 2010

Need of separate Association for 2-3 Wheelers

PAMA is not true representatives of 2-3 Wheelers Assemblers as only seven assemblers of 2-3 Wheelers are their members whereas more than 60 Assemblers of 2-3 Wheelers are members of APMA.

This is a known fact that 2-3 wheelers are different category than four wheelers or heavy vehicles according to criteria given in the Trade Organization Ordinance. WTO also recognized it as separate category according to Harmonized Sector Code (H S Code) which is recognized by Pakistan in Custom Tariff through FBR. Out Transport/Traffic Codes also recognized 2-3 wheelers as separate category.
Separate Associations are also allowed by the DTO in Textiles Sector for Spinning, Weaving, Hosiery, Apparels and Garments etc.

On the other hand PAMA membership form is very tedious and cumbersome and they are demanding heavy admission fee which is Rs300,000 and Annual fee is Rs250,000 which is very high for Small and Medium Companies. PAMA is also not entertaining the new membership of 2-3 Wheelers Assemblers and using delaying tactics. This fact can be confirmed through an independent checking of their record.

PAMA instead of resolving problems of the 2-3 wheelers assemblers was creating more problems for small and medium assemblers of 2-3 wheelers as one of their member of Motorcycles Assemblers (Yusuf H. Shirazi, Atlas Group) who have dominating role in PAMA did not want that small and medium assemblers of 2-3 wheelers prosper in the country as they were providing 2-3 wheelers transport at 60% of its price with same quality.

In view of the above it was requested to the government to restrict PAMA being Association of Four wheelers or Heavy vehicles and register APMA as genuine representative of 2-3 wheelers.

Government should seriously consider that Small and Medium Assemblers have already exported 25,000 Motorcycles due to competitive price and to attract R&D Support. They have also order in hand for export of another 10,000 units but due to non availability of Research and Development Rebate as mentioned above they are unable to compete in export prices.

Hence it is imminent that government should resolve the problems being faced by APMA members on immediate basis to just enable Small and Medium Assemblers to play their role in boosting exports and earn valuable foreign exchange for the country.