As we all know, the new Auto Policy also called Auto Industry Development and Export Policy (AIDEP 2021-26) has officially been passed. The new auto policy is focused on localization, export of car parts and affordable cars as government has reduced the taxes and duties. However, there is one additional information for the car companies in the policy.
The government has established an Auto Sector Monitor Committee (ASMC), which will monitor the companies whether they comply with the policy or not. According to the policy document the committee will work under chairmanship of Secretary Ministry of Industries and Production (MoIP) with representatives from FBR, SBP, Ministry of Science and Technology (MoST), PAMA, PAAPAAM and CCP.
Duties of Auto Committee
The duties of this committee will be:
- Addressing consumer grievances including ‘ON Money’ and delayed deliveries.
- Monitoring, targeting, verification and oversight of localization
- Safeguarding customers on quality issues
- Implementation of WP-29 safety regulations
- Surveillance of minimum initial payment not to exceed 20% of car’s total price
The document stated that the committee will have the right to recommend to stop incentives of a company, if it see non compliance of policy rules and regulations.
In short, the committee will be a watchdog over the car companies in Pakistan. If work properly, this committee can ensure the proper implementation of the policy. Furthermore, it will help in curbing the menace of ON Money. This menace has been a serious issue for the car buyers in Pakistan.
Also, the localization is another essential part of this whole policy and this committee should ensure. The localization of the major car parts will not only stable the car prices but also can lead to reduction. Currently, most companies import the important parts of the car including engine and transmission, which leads to increase in prices in case of increasing dollar rate.
What do you think about this committee? Do you think it will make an impact? Share your thoughts in the comments section.
