"@ssgme, @datz, if the deletion policy ends, how will the cars become cheap... importing car parts would need to economical for that to happen, otherwise it would be more expensive"
I think Deletion policy, as shueyb mentioned correctly, is a protective policy from the government of any country, to help the local automaker achieve an expertise in certain part of automobile. Until that level of expertise is achieve, the local industry needs some kind of protection from imports. And ending the deletion policy will be harmful for Pakistani auto assemblers and parts makers at this stage, as cheap Chinnese auto parts will flood the Pakistani market. Ending the Deletion policy right now will bring down the cars prices, but the Pakistani auto parts makers will be hurt and will be out of business. We need to support Pakistani Auto parts makers by not disturbing this Deletion policy right now. May be later on. BUT.... the automakers also have to do their part, that means, increase their investment in making more sophisticated parts like Engine and Transmission also in Pakistan. So far, not any Automaker, except the tractor makers, are locally making transmission systems or Engines.
I agree with Shueyb that Tariff system will continue to protect our local auto industry, which is a good sign. Our auto industry is still in developing stages, we don't want the cheap Chinnese autos to kill our local industry, by leaving our Auto industry without any protection at this stage. A healthy competition is encouraged but with passage of time, bring in foreign cars.