Punjab Excise Department Stops Smart Card for Vehicles

Jawad

13 Oct 2023

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Punjab Excise Department Stops Smart Card for Vehicles

In an unexpected turn of events, the Punjab Excise Department is facing a formidable challenge as the company responsible for producing vehicle registration cards has ceased its operations. This development comes amid a contractual agreement with the 'Inbox Company' for a substantial supply of these cards.

Details of the Contract and Extension

The department had initially entered into a five-year contract with the 'Inbox Company' scheduled to conclude in May. The contract entailed the provision of 8.5 million cards at a rate of Rs. 438 per card. While a brief extension granted an additional 400,000 cards, it couldn't forestall the forthcoming challenges. Before the extension's expiration, the Excise department succeeded in issuing more than 80,000 registration cards. However, despite a late tender, progress beyond the technical bid phase has been sluggish.

Addressing Backlogs and Exploring Virtual Cards

Presently, the Excise department grapples with a backlog of 2.5 million number plates. In an attempt to mitigate this issue, the department is considering alternative solutions, including the potential introduction of virtual cards.

Rising Costs and Exchange Rate Challenges

Complicating matters further, the cost of smart registration cards for cars and motorbikes in Punjab is set to significantly increase. This cost escalation is attributed to the remarkable surge in the US dollar's exchange rate against the Pakistani Rupee. The 2018 contract, initially pegged at a dollar rate of Rs. 140, has now soared to over Rs. 280.

Challenges of Advanced Smart Cards

Punjab Excise Department's smart cards boast more than ten security features, such as a monogram, temperature-based color-changing patterns, and unique lamination. However, the production of these advanced cards relies on imported raw materials, adding another layer of complexity to the current situation. As the Excise department navigates these challenges, the potential impact on both operations and end-users remains under close scrutiny.

What are your thoughts on this update? Please share your comments and insights in the section below.

Vehicle Registration Cards Punjab Excise Department Inbox Company Manufacturing Halt Backlog Issues Smart Card Costs Exchange Rate Challenges Virtual Cards Security Features Import Dependency

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