Federal Minister for Industries and Production (MoIP), Rana Tanveer Hussain on Tuesday advised the auto industrialists to work on improving the quality, price and exports by auto Industry in International market
ISLAMABAD, (UrduPoint / Pakistan Point News – 20th Aug, 2024) Federal Minister for Industries and Production (MoIP), Rana Tanveer Hussain on Tuesday advised the auto industrialists to work on improving the quality, price and exports by auto Industry in International market.
Chairing the fifth meeting of the Auto Industry Development and Export Committee (AIDEC), the minister directed to make a sub-committee that would review and address the issues of Auto Industry on quarterly basis in terms of regulatory assistance required for exports in international market.
He also directed for devising Auto Parts Manufacturing Policy aligned with its allied industry as localisation of auto parts would result in competitive pricing of Pakistani made auto vehicles in international market, according to press release.
The Committee deliberated upon Implementation of Policy instruments under AIDEP 2021-26 in terms of achievements of exports targets by existing OEMs (original equipment manufacturers) as well as New Entrants.
It also deliberated upon creation of mechanism for Addition of Parts in SRO 693(I)/2006, new addition of parts components in SRO 693(I)/2006, implementation of WP 29 Regulation, phasing out of Concessions on imports of CKD components of Motor Cycles and Tractors from SRO 656(I)/2005 to Fifth Schedule, import of old and used Auto Parts and incorporation of EV Specific components for 4-wheelers EVs (8703.8090) under 5th schedule of Customs Act.
The meeting also discussed removal of Sales Tax on local inputs procured under Export Facilitation Scheme (EFS), Duty protection on locally Assembled City & Intercity Buses (Diesel, Hybrid & Electric) and imposition of 25% Regulatory Duty:
On the occasion, the representatives of the Auto Industry highlighted difficulty in export of vehicles from Pakistan due to imposition of increased Duty and Tax structure.
They emphasized on dire need of signing Free Trade Agreements (FTA) / Preferential Trade Agreements (PTAs) and acquire consistent policies to enable localisation of parts and components to make the 2, 3 and 4 wheelers for achieving competitiveness in International Market.
The auto parts vendors on the other hand, highlighted that once a part is localised, the variant of part discontinues, as a result the vendors face huge losses. They recommended that, if one OEM localise a part, that shall be used by other OEMs requiring similar parts and localisation of parts and sub components should be time bound.
The Committee agreed that there should be ban and penalty imposed on import of used auto parts.
The meeting was attended by Secretary MoIP, Saif Anjum; CEO EDB, Engineer. Khuda Bukhsh; senior officers from MoIP, Engineering Development board, Ministry of Commerce, Science and Technology, FBR, Ministry of Communication, and Chairman PAMA, Chairman PAAPAM, Vice Chairman and dignitaries from leading Auto Industry including Ghandhara Industries, Master Motors, Pak Suzuki, Honda cars, Honda Motorcycles/Atlas Group, Dysin automobile, United Motors, Honda, Indus Motor Company, Dewan Motors and Pro Tech.
