ISLAMABAD   -  The government on Friday revealed to shut down all outlets of the Utility Stores Corporation (USC) across in the country.

Federal Industry and Production Secretary Saif Anjum disclosed in Senate Standing Committee on Industries and Production that the government is considering to shut down the utility stores across the country. However, the federal cabinet would take a final decision in this regard. He said that the government is considering a package for the USC employees and it might transfer the employees to the other departments.

“The government wants to get out of non-essential businesses,” he said, adding that providing relief to utility stores eliminated the atmosphere for competition. Senator Aon Abbas chaired the meeting of the Senate Standing Committee on Industries and Production held at Parliament House.

The Senate Committee deliberated on the inclusion of cold storage in the industrial sector and the provision of affordable electricity rates. The matter was referred by the Chairman Senate. Officials informed that the ECC approved the matter and forwarded it to the Cabinet for their approval to declare ‘Cold Storage’ an industrial sector.

Furthermore, the committee was briefed on Pakistan’s Auto Policy. Officials informed that 13 automobile companies are currently operating in the country. Initially, there were 3 companies, but as a result of the 2016-21 Auto Policy, 8 new players entered the market. These companies have installed production capacity of 500,000 units annually in more than 40 models with over 100 variants. They contribute 4% to GDP, pay Rs300 billion in taxes, and generate over 2 million jobs in the country. Under the 2021-26 Auto Policy, the Ministry has introduced WP-29 safety regulations for auto manufacturers. These safety standards have been adopted by all manufacturers except Suzuki for 6 variants. Suzuki has decided to discontinue 3 variants and redesign the remaining three to comply with WP-29 safety regulations.

Senator Saifullah Sarwar Khan Nyazee stated that no car manufacturer should be allowed to produce cars that do not follow WP-29 regulations, questioning who would be responsible for the lives lost in such vehicles.

Officials from the Ministry of Industries and Production explained that the government has set an export target of 7% for auto manufacturers for the year 2024-25. However, companies have obtained a court stay order claiming they will not be able to meet the target.

Senator Saleem Mandviwalla opined that cars majorly produced in Pakistan are not up to the international standards and that it is impossible to find suitable export markets for these vehicles.

Senator Aon Abbas highlighted the issue of reimbursement by auto manufacturers to customers in case of delayed vehicle delivery beyond 60 days. He stated that eight major car manufacturers, including Honda Atlas Cars, Indus Motor, Pak Suzuki, Hyundai Nishat Motors, and Kia Lucky Motors, have paid around Rs. 5.32 billion in compensation to customers. Officials informed that the Competition Commission of Pakistan is the concerned forum for checking malpractices by car manufacturers. Senator Aon Abbas directed that a detailed bifurcation of the amounts paid, along with the models of cars and the extra days for which the amount has been paid, be provided to determine if the compensation justifies the delay. The Committee also recommended that a universal mechanism be devised so that consumers and concerned departments can conduct real-time checks on car manufacturers.

Moreover, the Committee discussed the country’s EV policy. Officials stated that the government has introduced the EV policy to combat the climate crisis and diversify the automobile sector. Under the policy, there is a 1% customs duty on EV vehicle parts compared to 30% on traditional vehicles. The tariff for EV vehicles is also around 5-10% compared to 25-30% for traditional vehicles. These steps were taken to attract global EV manufacturers. Senator Saleem Mandviwalla opined that there is a dire need to build EV-friendly infrastructure; otherwise, the EV sector will not sustain. The Committee constituted a three-member Sub-Committee, under the convenership of Senator Saifullah Sarwar Khan Nyazee, to analyze the country’s EV policy.

The meeting was attended by Senator Syed Masroor Ahsan,Senator Saifullah Sarwar Khan Nyazee, Senator Khalil Tahir, Senator Mir Dostain Khan Domki, Senator Saleem Mandviwalla, Secretary for Ministry of Industries and Production Saif Anjum and other senior officials of concerned departments.

Prime Minister Shehbaz Sharif on Friday chaired a meeting on matters related to the Small and Medium Enterprises Development Authority (SMEDA), emphasizing the crucial role of SMEs in Pakistan’s economy.

He said the small and medium enterprises act as the back bone of the country’s economy.

Expressing dismay over the non-functioning of the SMEDA Board, the prime minister directed its immediate constitution, stressing that boards of all institutions vital for the country’s economy, should be established without delay.

Additionally, the he called for promoting sub-contracting in industries and taking all possible measures to integrate Pakistani industries into the global supply chain.

The prime minister also ordered to take necessary steps to ensure appointment of the SMEDA’s Chief Executive Officer.

Additionally, he also directed to include the people from the private sector in the steering committee.

During the briefing, the prime minister was informed that for the first time, SMEDA Development Fund had been launched for which an amount of Rs 30 billion had been allocated for 6 years. Out of the total, Rs 5 billion have already been provided for the year 2024-25, the meeting was told.

It was informed in the meeting that, there were currently 5.2 million small and medium enterprises in Pakistan, which account for 40 percent of the country’s GDP whereas 31% of country’s exports depend on the SMEs.

Apart from non-agricultural employment, SME sector provides 72% of employment while some Rs 491 billion have been provided in the form of bank credit for the SME sector so far, but the bank credit for the SME sector needs to be taken up to Rs 800 billion, the meeting was told.

The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Federal Minister for Economic Affairs Ahad Khan Cheema, Federal Minister for Industries and Production Rana Tanveer Hussain, PM’s Coordinator Rana Ihsaan Afzal, and other relevant high officials.

Also, Prime Minister Mohammad Shehbaz Sharif, expressing profound sorrow and grief over recent catastrophic floods, on Friday offered assistance Bangladesh to help cope with the devastating situation.

In a letter to Chief Advisor, Bangladesh Dr. Muhammad Younis, Prime Minister Muhammad Shahbaz Sharif expressed Pakistan’s solidarity with Bangladesh during this challenging time, stating that the country stood with those who have lost loved ones, homes, and livelihoods in the floods. This was shared in a press release by the PM’s Office.

He lauded the people of Bangladesh for their renowned bravery and courage, particularly in the face of adversity. The prime minister expressed confidence that Bangladesh’s leadership will guide the country through this challenging period. He also affirmed Pakistan’s readiness to offer any assistance, needed by Bangladesh.