Auto Policy 2015-18 Pakistan Finally Ready For The Approval

autopolicy15-18

Auto policy for 2015-18 is finally ready and has been sent to Economic Co-ordination Committee for the final approval. The committee working on the auto policy was headed by the Minister for Water and Power Khawaja Asif. Dr Mifta who is the chairman at the Board of Investment, told the press that the policy has be finalized from the government’s side.

According to the news, there are three major changes in the new policy. First, the word ‘new investor’ as been changed to ‘any investor’. The implications of this change are huge. It means the government will provide assistance and incentives to current investors if they are going to invest in the green sector, as well as the new investors. The part of the policy, category C, has been removed that said government will provide financial assistance to existing players who are interested in bringing out new models of the cars.

Also, according to new auto policy, the closed units will be regarded as closed facilities. It is significant for the companies like Ghandhara Nissan or Dewaan Farooq Motors, if they intend to bring back their cars again in the future. According to the report published in Business Recorder, the officials at Engineering Development Board are inclined to favor current market players, such as Toyota, Honda and Suzuki. The Japanese Ambassador held a meeting with the Finance Minister in this regard as well, and showed his concerns over any negative effects of the policy to the current Japanese automakers operating in Pakistan. Whereas Federal Board of Revenue is not ready to support EDB’s stance.

RELATED: ECC Meeting Fruitless Regarding New Auto Policy

For initial two years, a 10pc duty on the import of both localized and non localized parts was proposed by the Ministry of Industries and Production. FBR raised its concerns and didn’t agree to the single rate of duty for localized and non-localized parts. FBR wants a level playing field for the new entrants with regards to the incentive.

The ECC meeting held on 12th of August, 2015 didn’t bear any fruit and both Khawaja Asif and deputy convener Muhammad Zubair were unhappy about the delay in finalizing the policy.

Story: BR

  • Abdullah

    Aref bhai can u clarify for us all that what benefit would this policy bring for the customers and common man like me……?????
    Would the policy tempt new car makers to come to Pakistan????
    Would we get safety features like Airbags and ABS in all cars from now on???
    Would we get small hybrid cars??????
    Would this policy force Honda, Toyota and Suzuki to bring good quality cars to Pakistan????
    Would we get rid of ages old Mehran & Cultus??????
    What good is this policy for a common man like me????

  • Atif

    This policy is not going to bring about any change:-

    1. It does not enforce any kind of safety standards – no mandatory airbags, abs, immobilizer or structural standards.

    2. It goes not enforce any kind of quality standards
    3. The clause which made it mandatory for assemblers to replace models after 10 years have been taken out to favor Paksuzuki.
    3. There is nothing to modernize Pakistan’s technologically stagnated industry – Mehran, Bolan, Cultus, Ravi 1980s technology era vehicles are here to stay. Oh wait Swift is also obsolete and Pakistani Honda City will join the league in a few years as well.

    Sorry to burst everyone’s hope but it is a heavily flawed policy influenced heavily by Japanese Embassy and big three assemblers. New assemblers wont invest in Pakistan due to unrealistic localization requirements for new entrants set to favor local assemblers mafia. Do keep in mind Paksuzuki has maximum influence on this policy despite being given incentives for over 30 years since early 1980s (to the point of duty exemptions for CBU’s). To favor existing assemblers SKD’s (semi knock down) kits have been excluded and a mere 2-3 years of little incentives to new entrants are being granted, while Paksuzuki has been getting incentives for 30 years.

    It is a pro-Japanese, anti Pakistani consumer policy. The main beneficiary will only be Japanese economy who will get high rate of returns without investing in new models/technology in Pakistan.

    God please save Pakistan from corrupt government officials who design anti-consumer policies.

  • Atif

    unfortunately, it wont change anything. It’s a very controversial policy which is largely pro-existing assemblers. Consumer interests are largely overlooked. The worst part existing assemblers were part of the Automotive Development Committee which had a role in determining incentives for new entrants. So you can imagine how things are.

    Shame on PML-N government, just like previous government, all talk and no steps for actual development of our industry. In today’s globalized world we are competing with INdia, Thailand, Malaysia, Vietnam, Iran etc..and all have focused on technology.

    Indian government gave incentives and applied very low localization requirements at start for new entrants and only 10% duty on auto parts was implemented. Medium Knock Down and Semi Knock Down (SKDs) were freely allowed whereas Pakistan only allows CKD(Complete Knock Downs). We have failed to learn from our competitors to whom we always compare our defense forces with.

    The policy is a victory for Japanese and a loss for Pakistani consumers.

  • Abdullah

    Can we challenge this policy in a Consumer Court ????? Pakwheels should take the initiative and we can pool in the money for litigation ……. what good is this stupid policy for us………This policy shows the competence level of our rulers……..aur vote dooo ain aklamandoo kooo……i feel like banging my head against the wall……

  • Smokingaces

    EXACTLY MY QUESTION.

  • Umer Fayyaz

    sharing your opinion

  • Ali Ahmed

    Ameen. Seriously, I’m sick of that Mehran on our roads since I was born, God please get rid of that car. I mean, why the hell do people buy it when they can get a small, a bit used Japanese car like Mira in about the same price. :/

  • Ghayyour

    I think they must add the “Exporters” section also. It is not only the Pakistan market on which auto policy should work. Leverages and privileges should be given to those assemblers and manufacturers who will export cars/vehicles from Pakistan. And this is a very common practice in the world where ever these auto makers go, they not only consider that particular country demand but also consider who are the potential countries. If India, Malaysia, Indonesia can export cars to Srilanka, UAE, KSA why not Pakistan. Our policy makers should enforce these clauses for new or existing investors. Malaysia and Indonesia markets are not very huge markets yet they export and earn money. This will give many benefits. 1- Exports 2- standards and quality + features will automatically go up and improve for local buyers 3- Importance of Pakistan will increase.

  • Abdullah

    a very nice suggestion…….they should have a place on the web where we can post our comments for the policy makers to see……..in USA and UK they have proper sites where one can give advice and suggestions to policy makers……..in Pakistan they just make policies and take decisions without listening to a COMMON MAN & a CUSTOMER…….

    @Pakwheels should endeavor to raise the voice of the auto enthusiasts and customers at the Government Level…….we have no other way……:-(

  • Zaki

    @Abdullah a very nice suggestion…….come on PAKWHEELS do something before they get us in trouble for another 5 years with this Policy……

  • Zombie

    Nice idea……Pak wheels do something for USSSSSSSSSSSSSSSSSSSSSSSSSS……..

  • Atif

    That’s the way forward but unfortunately government has zero focus on exports. Substantial localization levels are only for Mehran, Bolan, Ravi and Cultus but these are obsolete cars with no safety or quality and have ZERO export potential.

    Govt needs to modernize industry immediately and adopt quality and safety standards else we will be stuck with the same disappointing situation.

  • farok sayer

    Local manufacturers are looting the consumer and selling junk at high prices.Local vehicles are being black marketed at Pak Rs 200,000 above the market price and waiting time for cars is 5 months with advance payment.How long will the government support the worthless car industry???Everyone should be allowed to import used cars at reduced duty and if these useless companie have to close down so much the better.

  • AMIR RAFIQ

    Dear Atif New Policy for 2016 Announced by khawaja Asif , Any good news.

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