Govt to ensure import of used cars won’t hurt local industry: PM
- Aziz approves long-term auto policy in principle
Staff Report
ISLAMABAD: Prime Minister Shaukat Aziz has approved, in principle, a long-term auto policy which will be presented to the Economic Coordination Committee of the cabinet (ECC) for its formal approval in January2007, as he has assured that the government will regulate the import of used cars in a manner that the local industry is not impeded.
The prime minister took the decision while chairing a meeting here on Wednesday to review the long-term auto policy prepared by the Ministry of Industries and Production in consultation with all stakeholders.
The meeting was attended by Federal Minister for Industries and Production Jahangir Khan Tareen, Deputy Chairman of the Planning Commission Dr Akram Sheikh, senior officials and leading automobile manufacturers.
The prime minister asked the ministry to submit a detailed auto industry development programme (AIDP) immediately, said an official statement.
The prime minister said the government attaches great importance to the auto industry, as it is a key driver of economic growth and a creator of jobs and employment in the country. He said the government is keen that apart from meeting the growing local demand for autos, the auto industry should get into the export of auto parts which is a volume and niche business requiring specialization.
The government, he said, recognizes the auto industry as an important stakeholder and wants it to expand in keeping with the demand that is expected to grow significantly in view of the increase in the size of the middle class and the economy.
The prime minister said the long-term auto policy will provide the investors predictable and transparent environment and will facilitate long-term investment, encourage growth and competition, enhance competitiveness and stimulate innovation.
“The government is acting as an enabler for the private sector and will ensure consistency and continuity of policies to facilitate the auto industry’s integration into the global supply chain,” he said.
The prime minister also emphasized the need for indigenization of the auto industry, which, he said is now getting increasingly possible with the development of engineering industry in the country.
Mr Tareen made a presentation about the salient features of the policy. He said the important pillars of the policy include a five-year tariff plan, human resources development plans, auto cluster development, technology acquisition support, incentive for higher value indigenization, penalty for not achieving further indigenization and institutional mechanism including industry representatives for regular assessment and review of progress under the policy.
Representatives of the car industry said the policy will encourage the private sector to invest more, leading to value addition and modernization of the industry. They said the long-term policy will boost the confidence of the private sector and will enable them to do future planning in a better way.