ISLAMABAD, Aug 20 (INP): -- Engr. Mr. Khuda Bukhsh, CEO of EDB, Senior officers from the Ministry of Industries and Production, EDB, Ministry of Commerce, Science and Technology, FBR, Ministry of Communication, and Chairman PAMA, Chairman PAAPAM, Vice Chairman and dignitaries from leading Auto Industry namely, Ghandhara Industries, Master Motors, Pak Suzuki, Honda Cars, Honda Motorcycles/Atlas Group, Dysin Automobile, United Motors, Honda, Indus Motor Company, Dewan Motors, Pro-Tech etc.

The Committee deliberated upon Implementation of Policy instruments under AIDEP 2021-26 in terms of achievements of exports targets by existing OEMs as well as New Entrants, creation of mechanism for Addition of Parts in SRO 693(I)/2006, new addition of parts components in SRO 693(I)/2006, implementation of WP 29 Regulation, phasing out of Concessions on imports of CKD components of Motor Cycles and Tractors from SRO 656(I)/2005 to Fifth Schedule, import of old and used Auto Parts, incorporation of EV Specific components for 4-wheelers EVs (8703.8090) under 5th Schedule of Customs Act, removal of Sales Tax on local inputs procured under Export Facilitation Scheme (EFS), Duty protection on locally Assembled City & Intercity Buses (Diesel, Hybrid & Electric) and imposition of 25% Regulatory Duty:

The Auto Industry emphasized on experiencing difficulty in export of vehicles from Pakistan due to imposition of increased Duty and Tax structure as the Auto industry. The auto industry emphasized on dire need of signing Free Trade Agreements (FTA) / Preferential Trade Agreements (PTAs) and acquire consistent policies to enable localisation of parts and components to make the 2, 3 and 4 wheelers for achieving competitiveness in International Market. The auto parts vendors on the other hand, highlighted that once a part is localised, the variant of part discontinues, as a result the vendors face huge losses. The vendors recommended that, if one OEM localise a part, that shall be used by other OEMs requiring similar parts and localisation of parts and sub components should be time bound. The Committee agreed that there should be ban and penalty imposed on import of used auto parts.

The Minister concluded the meeting by recommending Auto industrialists to work on improving the quality, price and exports by Auto Industry in International market. He further directed to make a sub-committee that shall review and address the issues of the Auto Industry on quarterly basis in terms of regulatory assistance required for exports in the international market. He also directed to device of an Auto Parts Manufacturing Policy aligned with its allied industry as localisation of auto parts would result in competitive pricing of Pakistani Auto vehicles in the international market.

Credit: Independent News Pakistan (INP)