Car Prices Fraud: Govt to conduct a forensic audit of carmakers

Report

Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has accused Pakistan car assembles of alleged fraud in sudden prices of cars in the country.

Following allegations of PAAPAM, the government has decided to conduct a forensic audit of local car manufacturers relating to a massive increase in car prices.

A high-level meeting of the monitoring committee for the automobile industry met under the chairmanship of Federal Secretary for Industries & Production, Mr. Jawad Malik on Thursday.

Representatives from automakers, Pakistan association of automotive parts and accessories manufacturer (PAAPAM), Engineering Development Board(EDB), Federal Board of Revenue (FBR), State Bank of Pakistan (SBP), Competition Commission of Pakistan (CCP), and Ministry of Science & Technology.

The forum sought factors and justification for recent price hikes in different models of cars across the board.

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The meeting was told that the recent price hike is due to Dollar Rate (USD to PKR), an increase in freight charges, and raw materials including operational costs. The industry also provided details on the causes of late delivery, CDK imports, and production capacity.

The monitoring committee expressed concerns over massive hikes in prices in the past 5-6 months and safety features in automobiles.

Forensic audit of car prices

After due deliberations, the Chairman committee directed to carry out a forensic analysis of car prices in comparison with factors indicated by the industry as a reason for price change through independent professional expertise.

The committee directed secretary to complete the forensic analysis within two weeks. The Chair also asked the automotive industry to provide a localization plan with a time frame as well as safety features compliance report to the Ministry.

Meanwhile, the government had approved several incentives for local car manufactures to cut prices. They had not only received incentives but involved in massive increase in cars prices for several times to plunder the customers.