ISLAMABAD: Four Companies’ monopoly in Pakistan’s automobile sector dominated proceedings of the Senate Standing Committee on Finance, as Faisal Vawda accused the system of favouring a limited number of auto companies, ARY News reported.
The issue was raised during a meeting chaired by Senator Saleem Mandviwalla, where Senator Faisal Vawda questioned the regulatory framework governing vehicle safety standards and accused the system of favouring a limited number of companies in the auto industry of Pakistan. He claimed that policy decisions had enabled what he described as a monopoly by four major firms.
During the session, concerns over jurisdiction of safety standards were also discussed, with lawmakers noting that the authority had been shifted from the Ministry of Industries and Production and later returned to the Ministry of Science and Technology following internal review and objections raised in committee deliberations.
Faisal Vawda alleged that the structure of the local automobile policy was leading to significant financial losses and inefficiencies, and claimed that regulatory bodies were operating beyond their defined mandates. Vawda, in his argument, criticised the Engineering Development Board (EDB) for its role in setting safety and inspection standards for the sector.
Representatives from the Commerce and Science ministries explained that the cabinet committee had already given the Industry Ministry the job of handling regulations. They also stated that the overall rules and legal framework are still in draft and will need approval from parliament.
The committee also learned that some standards were recently updated to fix administrative issues. Officials accepted that mistakes were made in the approval process and that they have taken steps to correct them.
The discussion also included regulatory concerns, including inspection authority and overlapping jurisdiction among institutions involved in the automotive sector of Pakistan.
The meeting concluded with a resolution to revisit the issue in the future. The committee is expected to suggest how to clearly define who is in charge of regulating the auto industry.