BAFL 45.75 Increased By ▲ 0.70 (1.55%)
BIPL 20.80 Increased By ▲ 0.29 (1.41%)
BOP 5.50 Decreased By ▼ -0.14 (-2.48%)
CNERGY 4.59 Increased By ▲ 0.04 (0.88%)
DFML 15.90 Increased By ▲ 0.20 (1.27%)
DGKC 73.70 Increased By ▲ 2.49 (3.5%)
FABL 27.50 Increased By ▲ 0.10 (0.36%)
FCCL 17.00 Decreased By ▼ -0.15 (-0.87%)
FFL 8.64 Increased By ▲ 0.09 (1.05%)
GGL 12.69 Increased By ▲ 0.02 (0.16%)
HBL 113.00 Increased By ▲ 0.30 (0.27%)
HUBC 120.33 Increased By ▲ 1.22 (1.02%)
HUMNL 7.49 Decreased By ▼ -0.11 (-1.45%)
KEL 3.28 Increased By ▲ 0.01 (0.31%)
LOTCHEM 27.77 Decreased By ▼ -0.08 (-0.29%)
MLCF 39.06 Decreased By ▼ -0.02 (-0.05%)
OGDC 108.40 Increased By ▲ 0.09 (0.08%)
PAEL 17.88 Increased By ▲ 0.13 (0.73%)
PIBTL 5.50 Decreased By ▼ -0.06 (-1.08%)
PIOC 105.80 Decreased By ▼ -0.20 (-0.19%)
PPL 92.89 Increased By ▲ 0.39 (0.42%)
PRL 25.15 Decreased By ▼ -0.19 (-0.75%)
SILK 1.04 Decreased By ▼ -0.03 (-2.8%)
SNGP 63.07 Decreased By ▼ -0.65 (-1.02%)
SSGC 11.86 Decreased By ▼ -0.14 (-1.17%)
TELE 8.35 Decreased By ▼ -0.11 (-1.3%)
TPLP 13.26 Decreased By ▼ -0.08 (-0.6%)
TRG 83.75 Decreased By ▼ -1.65 (-1.93%)
UNITY 26.18 Increased By ▲ 0.22 (0.85%)
WTL 1.54 No Change ▼ 0.00 (0%)
BR100 6,208 Increased By 21.7 (0.35%)
BR30 21,591 Increased By 132 (0.62%)
KSE100 60,780 Increased By 278.2 (0.46%)
KSE30 20,276 Increased By 100.2 (0.5%)

ISLAMABAD: Finance Minister Shaukat Tarin Thursday stated that the proposed auto policy aims at expansion of auto industry in Pakistan by increasing the production of cars, motorcycles, and tractors, etc.

The finance minister presided over a meeting to review a draft Auto Industry Development and Export Policy (AIDEP) 2021-26. The meeting was attended by Federal Minister for Industries and Production Khusro Bakhtyar, Advisor to the Prime Minister on Commerce Abdul Razak Dawood, SAPM on Finance and Revenue Dr Waqar Masood, secretary Finance Division, secretary Commerce, secretary Ministry of Industries and Production, chairman FBR, and other senior officers participated in the meeting.

The finance minister emphasised broad-based consultations with key stakeholders to come up with an all-encompassing and futuristic AIDEP 2021-26.

Pakistan targets automobile production of 300,000 in FY22

The secretary Ministry of industries and Production briefed the participants about the salient features of the draft AIDEP 2021-26.

The vision of the AIDEP should be to make Pakistan a hub for competitive manufacturing of auto parts and vehicles for local markets as well as for exports.

The meeting was further told that the key focus is to strengthen the competition within locally-manufactured vehicles in order to provide high quality vehicles at affordable prices to the consumers in the country.

It also includes increase in export of automobile parts and vehicles to earn a valuable foreign exchange.

The top-most priority is to ensure consumer welfare through availability of cars at affordable rates for the middle and lower income groups.

With this end in view, the government has provided major relief to the consumers by reducing sales tax on 850cc cars along with exemption from value-added tax in the federal budget 2021-22.

Incentives for auto industry: FBR issues details

The Ministry of Industries and Production confirmed that prices of vehicles have been reduced commensurate with reduction in taxes and the industry has widely advertised for the information of the general public.

The policy would encourage exports of vehicles and automobile parts.

The finance minister also underscored the importance of Electric Vehicles (EVs) and affirmed to provide incentives for developing Electric Vehicle market in Pakistan including EV charging infrastructure.

The promotion of EVs will reduce dependence on oil import bill and promote environment-friendly options.

The finance minister also stressed to come up with innovative products for provision of car financing at reduced mark-up to consumers, so that everyone can afford a car at flexible terms and conditions.

The Minister for Industries and Production said that new entrants may be encouraged in the auto sector particularly for EVs. This, in turn, would encourage auto companies to invest in related infrastructure in Pakistan.

The Advisor to Commerce stated that the existing tariff structure needs to be rationalised (in a phased manner) to promote auto industry in Pakistan, keeping in view, the objective of localisation i.e. to encourage local auto industry to come up with high quality vehicles within affordable range.

Copyright Business Recorder, 2021


Comments are closed.

Proposed auto policy: Tarin directs broad-based consultations with key stakeholders

Policy envisages transformation of non-strategic SOEs

$3bn deposit: SFD extends term for one year

Operation of SRO about additional tax on banks’ windfall income suspended

PM, Kuwait’s Crown Prince agree to deepen bilateral ties

Defaulters’ utility connections to be cut: FBR starts serving notices with 30-day compliance time

FBR resolves Sino-Pak ‘trade gap’ issue

Defaulters of govt dues, utility bills: ECP takes major decision ahead of nomination-filing

Recycling of ships: Accession to ‘Hong Kong Convention’ approved

Carbon credit sharing: PPIB seeks MoCC’s nod

At the rate of Rs3.53/unit for Oct 2023: Nepra agrees to allow Discos to recover Rs32.7bn additional amount