Chairman Privatisation Commission (PC) Muhammad Zubair has reportedly barred Ministry of Industries and Production (MoI&P) from submitting the long- awaited new draft Auto Policy to the Economic Co-ordination Committee (ECC) of Cabinet without taking Minister for Industries Ghulam Murtaza Jatoi on board, well-informed sources in Engineering Development Board (EDB) told Business Recorder.
The sources said EDB has prepared a draft Auto Policy in more than one year and presented it time and again to Chairman Privatisation Commission who is also the deputy convenor of the sub-committee constituted by the ECC on the demand of Minister for Water and Power Khawaja Asif with the direction that the new Auto Policy should be submitted in a month.
Khawaja Asif was appointed as the convenor of the sub-committee but he did not give the required time on this issue. He also ignored recommendations of different auto sector stakeholders.
The role of Minister for Finance Senator Ishaq Dar was also critical in preparation of Auto Policy as he was least interested in submission of policy to the ECC, the sources continued. Local auto industry resisted the previous draft of the Auto Policy at all forums, arguing that they would not accept an `anti-auto industry'' policy. Though Ministry of Industries and Production started working on the Auto Policy more than a year ago, Minister for Industries and Production Ghulam Mustafa Jatoi had not been taken into confidence in this regard.
However, when Business Recorder unveiled the draft Auto Policy last year after which the auto sector stakeholders rushed to Islamabad. "We took the auto sector on board on the draft Auto Policy but the final draft cannot be shared with them as a matter of policy," the sources added. Recently, Secretary Industries and Production Arif Azim sought permission from Muhammad Zubair to submit the draft Auto Policy to the ECC, but he did not allow the ministry to move forward until he takes the industries minister into confidence, the sources further added.
"The draft Auto Policy CKD rate for cars at 30 percent and AMEX 45 percent whereas new entrants will be granted 10 per cent CKD for initial four years," said an insider. The sources further stated that the government will tighten import of used cars policy which is hurting the local industry with the condition the local industry will increase production "premium or own money" is not charged from the buyers.