Automobile sector: Functioning licences granted to six new entrants, NA body told

ISLAMABAD: Federal Minister for Industries and Production Hammad Azhar on Tuesday said the government had tried to create competition in the automobile sector by granting functioning licenses to six new entrants.

M/s Kia Lucky Motors Pvt Ltd, M/s United Motors (Pvt) Ltd, M/s Regal Automobile Industries Ltd, M/s Foton JW Auto Park (PVT) Ltd, M/s Master Motors Ltd and M/s Hyundai Nishat Motor (Pvt) Ltd were the new entrants with total on ground investment of $476 million, he said while briefing the National Assembly’s Standing Committee on Industries and Production about the Electric Cars Policy in connection with the Automotive Development Policy (ADP).

The committee met here under the chairmanship of Sajid Hussain Turi. The meeting was attended by members of the National Assembly Sahibzada Sibgatullah, Sajida Begum, Usama Qadri, Muhammad Akram, Ali Gohar Khan, Muhammad Abdul Ghafar Wattoo, Ms Shandana Gulzar Khan, Rana Muhammad Ishaq Khan, Abdul Rehman Khan Kanju and Syed Mustafa Mahmud.

Hammad Azhar said under the ADP 2016-21, 20 new investors had been granted green filed status.

He said the policy would strengthen the automotive sector by increasing overall installed capacity of local industries up to 418,000 per annum by June, 2020-21 from 280,000 approximately of last year.

The Engineering Devolvement Board (EDB) director general informed the meeting that the tariff announced for hybrid electric vehicles (HEVs) under the ADP 2016-21 would provide 50% exemption to cars of 1800cc and 25 % exemption to the ones exceeding 1800cc.

Mustafa Mehmud expressed his concern about the hybrid vehicles and suggested that electric vehicles technology should be launched instead of hybrid technology.

Electric charging station on solar-based technology should be encouraged and re-use of batteries at home might be worked out like in the United States, he said citing the example of TESLA batteries re-used in the US.

Minister Hammad Azhar said initially two-three wheelers and heavy commercial vehicles polices had been approved by the Federal Cabinet and implemented.

It was told that the EV policy for four wheelers was being finalized by the inter-ministerial committee formed under the administrative control of Planning Commission and chairmanship of Minister for Industries and Production. The committee in its meetings had made recommendations made regarding taxes regime applied on imported parts and local vendors related to the automobile sector.

The EDB official told the committee that they had already recommended for the removal of additional customs duty, additional sales tax and Federal Excise Duty to the government.

The committee members expressed their concerns over the higher prices of vehicles in the country and misuse of gift schemes for import of vehicles.

The committee recommended to Federal Board of Revenue (FBR) for an early release of Income Tax and Sales Tax refunds to Millat Tractors and Honda Atlas Car (Pakistan) Ltd, Lahore.

The Member Policy FBR assured the committee that the compliance report in this respect would be furnished to its secretariat, shortly.

The committee was briefed about the reasons for the termination of stenotypists. It was told that an inquiry had been initiated within the Ministry of Production and Establishment Division against the officers allegedly involved in the matter.

The committee recommended that the Secretariat Training Institute (STI) might be requested for training of the terminated stenotypists by providing them a final opportunity on humanitarian grounds.

The Director General of Pakistan Institute of Management (PIM) briefed the committee about the budget, source of training, rented out PIM Building J.S Bank, and appointments and promotions made by the institution during last three years.

The committee expressed its grave concerns on the award of PIM Building to J.S Bank without following a proper procedure.—APP