The alleged concentration of market power among a few firms in Pakistan’s automobile sector came under scrutiny during a meeting of the Senate Standing Committee on Finance on Tuesday, where Senator Faisal Vawda raised concerns about what he described as a regulatory environment favoring a limited number of companies.
The issue was discussed in a session chaired by Senator Saleem Mandviwalla as lawmakers reviewed vehicle safety standards, regulatory oversight, and the division of authority among relevant institutions in the auto industry.
Senator Vawda questioned the existing policy and inspection framework, alleging that it has effectively enabled dominance by four major companies. He argued that the current structure is contributing to inefficiencies in the sector while allowing regulatory bodies to operate beyond their defined scope.
He also specifically criticized the Engineering Development Board, questioning its role in setting and enforcing safety and inspection standards for the automotive industry.
During the meeting, committee members examined which institution holds jurisdiction over vehicle safety regulations, noting that responsibilities had previously been transferred from the Ministry of Industries and Production to the Ministry of Science and Technology before being reconsidered following internal reviews and committee feedback.
Officials from the Ministries of Commerce and Science informed the panel that the Cabinet Committee had already assigned regulatory responsibility back to the Ministry of Industries and Production. However, they added that the formal legal framework is still in draft form and will require parliamentary approval before it can be fully implemented.
The committee was further briefed that certain technical standards had recently been revised to address procedural gaps. Officials acknowledged administrative errors in earlier approvals and said corrective steps had been taken.
Members also raised broader concerns regarding overlapping authority and unclear inspection responsibilities among multiple institutions regulating the automotive sector.
The session concluded with the decision to revisit the matter in a future meeting, with lawmakers expected to work toward defining a clearer and more transparent regulatory structure for the industry.
