Federal Industries and Production Minister Jehangir Khan Tareen has said the Auto Industry Development Plan (AIDP) would be ready by March 31, 2007 to be presented before the federal cabinet.
Addressing at the inaugural ceremony of Pakistan Auto Parts Show - 2007 (Paps) at Karachi Expo Centre on Thursday, he said the Engineering Development Board (EDB) was actively busy in finalising the paper, adding that this plan contained incentives to the automobile sector for the export of auto-parts. "This will also have targets for the industry and encourage local production of higher value-added components of automobile," he added.
Tareen said the government allowed import of used-cars to fill the demand supply gap, adding that unless and until the 'premium' existed the import would continue. The minister said that government was focusing on the automobile sector, which had a capacity to attract an investment of Rs 250 billion in the next five-year. Most of this investment would be made by the vendors for capacity expansion to meet the target of 0.5 million vehicles per annum by 2010.
The international exhibition of auto-parts is being organised by the Pakistan Association of Automotive Parts Accessories Manufacturers (Paapam). Among others auto parts manufacturers and automobile companies from all over the country attended the expo.
Paapam Chairman Shariq Suhail said with a registered membership base of 278 members and general manufacturers base of over 1,200 companies, the Association had under its wings manufacturing companies making parts for Pakistan's cars, motorcycle, tractors, trucks and buses assemblers while the investments in place was exceeding $1.5 billion.
Shows like PAPS - 2007 were aimed at showing the strength of industry to government and public and create a positive perceptions and good relationships, he said. According to the organisers, the objective of PAPS - 2007 is to provide information for participants, general public, policy-makers, create awareness about industry facts for general public and policy-makers, seek government support in terms of growth-oriented consistent policies.