The indigenisation policy followed by the Government of Pakistan has been instrumental in promoting manufacturing activities in the country, followed by technology transfer and investment inflow, boosting the national wealth and employment generation.
The industry, in general, and the engineering sector, in particular, have shown stellar growth as a follow up to the indigenisation programmes being developed and monitored through the public-private partnership at the forum of the Engineering Development Board.
According to conservative estimates, investment to tune of $350 million has been channelised into the automotive sector alone during the last 4 years, as a follow up to the deletion programmes.
This has immensely helped the automotive sector to pursue the much-awaited technology transfer and technology development and employment opportunities for additional 100,000 people.
MAJOR INVESTMENTS, MADE SINCE 2001, IN THE AUTOMOTIVE SECTOR INCLUDE:
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Dewan Farooq Motors Ltd (Car, Pick-up, SUV, Motorcycle) $38 Million
Raja Motors Co (Car) 7
Master Motor Corporation (Mini Truck) 5
Adam Motor Co (Mini Truck, Jeep, Car) 10
Atlas Honda Ltd 15
Delta Innovations Ltd 10
2/3 Wheelers 45
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Vendors 200-250
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According to industry resources, an additional investment of around $300-325 has been planned by OEMs and vendors in the next two years.
The deletion levels achieved in the automotive sector since 2001, along with targets for the next two years are as under:
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DELETION LEVELS
S/NO PRODUCT JUNE JUNE JUNE JUNE
2001 2002 2003 2004
% % % %
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1 CARS
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Cat 1, Upto 800 cc 70.00 70.00 70.25 70.50
Cat 2, Above 800 cc Upto 1200 cc 55.00 58.00 61.00 64.00
Cat 3, Above 1200 cc 50.00 53.00 56.00 59.00
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2 TRACTORS
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Cat 2, Above 40 & Upto 55 HP 2x2 82.50 83.00 83.50 84.00
Cat 3, Above 55 & Upto 80 HP 2x2 60.25 62.50 62.75 63.00
Cat 4, Above 55 & Upto 80 HP 4x4 48.00 50.00 50.00 54.00
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3 MOTORCYCLES
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Cat 1, Upto 70 cc 83.00 85.00 86.50 88.00
Cat 2, Above 70 Upto 100 cc 82.00 83.00 85.00 85.50
Cat 3, Above 100 Upto 175 cc 74.00 81.00 82.00 83.00
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4 COMMERCIAL VEHICLES
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Cat 1, Pickup 2 Ton GVW 63.00 65.00 67.00 69.00
Cat 2 (A), Pickup S/C, 4x2, GVW Above 38.00 43.00 48.00 51.00
2 Tons Upto 5T
Cat 3, Rigid Truck 4x2, 5 to 8 Tons 49.00 49.50 50.00 50.50
Cat 4, Rigid Truck 4x2, Above 8 T 53.00 54.00 55.00 56.00
Cat 5(A), Rigid Truck 6x2, Above 8 50.00 51.00 51.50 52.00
Tons Upto 30 Tons
Cat 5 (C), Truck, Tractor/Prime mover 42.70 42.70 42.70 42.70
4x2, GCW, Upto 30 tons
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5 BUSES
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Cat 1, Mini Bus Upto 30 Passengers 44.70 45.80 47.00 48.00
Cat II, Above 75 Passengers 46.50 47.50 48.50 50.00
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6 SPORTS UTILITY VEHICLE (SUV)
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SUV, 4x4 4.00 43.00 45.00
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7 ALL TERRAIN VEHICLE
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Jeep Type 40.00 44.00 48.00
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Monitoring of the deletion programmes is a regular feature. The following audit team is at present on tour to carry out the audit as per schedule given below:
-- 20-21/2/2004 - M/s Fateh Motors Ltd Hyderabad
-- 23-24/2/2004 - M/s Indus Motor Company, Karachi
-- 25-26/2/2004 - M/s Pak Suzuki Motor Company, Karachi
The team will also visit the relevant vendors for verification of manufacturers' facilities.
Each unit working under a deletion programme is audited at least once a year. The audit is carried out on the basis of information provided on a proforma DMY. The CKD imports are monitored by the CBR whereas the local purchases are confirmed from vendors through sales tax invoices, against the actual supplies made to the OEMs, against the orders followed by them.
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