A delegation of Japan International Cooperation Agency (JICA) headed by its Chief Representative Shigeki Furuta called on Abdul Razak Dawood, Adviser to Prime Minister on Commerce, Textile, Industries & Production and Investment, to deliberate upon upgradation of automobile and textile industries of Pakistan in order to promote trade and investment. The JICA delegation talked about promotion of auto sector and decrease in its sales due to heavy taxes recently imposed by the federal government, in addition to regulations.
"Auto periodical inspection after procurement and installation of security features also came under discussion," said an official. Shigeki Furuta ensured that JICA will provide assistance for economic development of Pakistan owing to the improvement of investment regime in the country. Better business climate and supporting activities of Japanese Automobile Companies (Suzuki, Toyota and Honda) in Pakistan including promotion of their associated industry in Pakistan was deliberated in the meeting.
The JICA is going to assist the automobile industry in order to enhance its domestic production from existing 200,000 cars by introducing new safety and environment friendly features. Moreover, the JICA will also support in developing requisite regulations for the said new features and establishing inspection infrastructure for testing of new and used vehicles of insurance safety of the consumers, the JICA chief highlighted.
The adviser to the PM apprised participants that the Auto Development Policy (2016-21) provided a uniformed and consistent policy framework for the development of auto industry in Pakistan which offered tremendous opportunities for the investment in auto sector.
Moreover, the advisor informed the delegation regarding enormous investment opportunities in technology upgradation of whole value chain, including ginning, spinning and knitting, of textile sector as the textile manufacturers are using very old technology which has made them uncompetitive in the global textile market. For this, the Japanese government should create a fund which can be used for the purchase of machinery by Pakistani textile manufactures for technology upgradation of textile sector, he added.
He further emphasised that Pakistan has upgraded its investment and business environment owing to its improved global ranking in Ease of Doing Business Index by 11 points. In this regard, Pakistan has also launched a programme, Regulatory Guillotine, to ease the business regulations. Through this programme 2 to 3 regulations are removed every month to ease out the business activities, the advisor highlighted. He also added that Pakistan has taken various effective steps to improve trade procedures by establishing better trade facilitation regime.
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