Govt., auto-industry final talks on tariff-based policy before budget
ISLAMABAD: The final round of talks between the government and the auto-industry on tariff-based policy will be held before the budget meeting for giving a final shape to the new policy, which later on the approval of the Economic Coordination Committee (ECC) of the Cabinet, would be announced along with the budget.
Engineering Development Board’s chairman, Wasim Haqqi told Geo News that the proposals submitted by the auto-industry and giving additional incentives to new companies were presently being mulled over.
Auto parts industry’s former chairman, Mehdi Ali Rizvi told Geo News that the deletion level i.e. the number of parts manufacturing in the country could not be raised since last one and a half year and the deletion rates for small and big cars have remained stagnant at 72 and 61 percent respectively due to the prevailing uncertainty regarding tariff-based policy.
Auto-industry under the deletion policy is obligated to increase the number of parts manufacturing in the country, while the government, after the abolition of deletion policy under WTO, is endeavouring to introduce a tariff-based system, which is lying pending since last few years due to revision in EDB and lethargy of the industries.
Tariff-based policy, by providing tariff protection to the manufacturing of parts within the country, will also be making possible the import of other parts at cheaper rates.