sir, no policy at government level will be specific to such level which says,
'Rasheed ki dukaan se 2 darjan LOCAL banana le kar istemaal karen'
Rather it always adopt ways which could be expressed or implied because being specific will show that government is promoting monopoly and other such practices.
There are many ways and tools available with Government to acheive the desired results as intended.
for this particular issue, Government has created two seggregations namely Localised and Non-Localised parts for automobile industry.
Localised means which have been produced localy
non-localised means which are not avaialble/produced locally.
Now as policy, to promote the local parts industry and to reduce dependency on imports which is main cause of price hike every other day, Goverment has introduced different set of taxes/duties on localised and non localised parts, obvioulsy taxes/duties are significantly higher on import of localised parts which has implied meaning to use local parts whereever available to justify the claim that car proces are kept at bare minimum levels and increased only due to expensie imports of non localised parts.
if we look further, there is a separate body to protect the rights of local car parts Pakistan Association of Automotive Parts & Accessories
Manufacturers (PAAPAM)
furthermore the there is a policy called 10-year ‘Auto parts localization policy’ (APLP) to ensure the localization of all value-added parts.
and The SRO-693 protects the auto part makers in terms of giving them duty support. There are two kinds of classification of parts. Localized and un-localized. Those who are localized have higher import duty as compared to non-localized parts. The delta (at 15%) is kept to incentivize auto part makers to do R&D and build more parts at home and once they have economies of scale in any part, there is potential to export.
while 99.9999999% cars/tractors/buses/rickshaws/cycles/motorcycles/tricycles/trolleys coming out with local made rubber, referring only to exception of Grande is not valid, as at that time the required size and profile was not available with local tyre manufacturers.
