Economic Co-ordination Committee of the Cabinet is to consider the much-awaited five-year Auto Policy 2015-18 on Wednesday (today) with complaints from industry that it has not been taken on board due to last minute changes, sources close to Secretary Industries told Business Recorder. "Industry has not been consulted. A lot has been added to the draft including emissions and safety standards," said one of the stakeholders.
Japanese ambassador met a number of times with Ministers including Finance Minister Ishaq Dar and pressed them that Japanese investment should not be hurt. The committee has recommended that used cars policy should continue so that consumers should get cars at reasonable rates. FBR is of the view that used cars policy should continue so that its revenue could increase. However, local industry resisted the proposal tooth and nail.
According to the summary obtained from the Industries Ministry, ECC of the Cabinet in its meeting held on October 02, 2013, constituted a committee comprising Minister for Water & Power as Convenor, the then Chairman BoI as Deputy Convenor, Secretary Industries & Production, Chairman FBR, and CEO Engineering Development Board, to finalise Draft Automotive Development Policy (ADP 2015-20) and submit the same to the ECC for consideration.
The committee held several in-house meetings as well as detailed deliberations with stakeholders to understand core issues and conflicting interests influencing development and growth of the automotive sector. The following ADP objectives were firmed up after a thorough analysis of the situation: (i) facilitate higher volumes, more investment, enhanced competition, and better quality with latest technology; (ii) creating a balance between industrial growth and tariffs to ensure sustainability of all stakeholders; (iii) ensuring consumer welfare, and (iv) providing policy consistency and predictability for investors as well as mid-term policy review mechanism to cater for emerging developments.
A summary was earlier submitted to the ECC which was deferred by the ECC in its meeting held on August 26, 2014 with the direction that it should be circulated to stakeholders, including relevant ministries and industry, for views and comments. Accordingly, the draft summary was circulated to all stakeholders and their comments and inputs were reviewed by the committee and duly incorporated wherever deemed justified. Based on these outcomes, further deliberations were held with the Federal Board of Revenue (FBR).
The committee constituted by the ECC held a number of consultative sessions subsequent to finalising its recommendations to achieve the policy objectives set forth in paragraph 2 ante, and proposes the following strategic interventions of the ADP 2015-20: (i) lower the entry threshold for new investment; (ii) create enabling tariff structure for development of the automotive sector; (iii) rationalise automobile import policy; (iv) provide regulatory and enforcement mechanisms for Quality, Safety and Environmental Standards; (v) establishment of Pakistan Automotive Institute;(vi) ensure consumer welfare through provision of quality, safety, choice and value for money; (vii) other Interventions, and Auto Industry Development Committee. The Automotive Development Policy (2015-20) will be for ten years with a review, if necessary, to be made after five years, is placed before the ECC of the Cabinet for consideration and approval.