People troubled by rising car prices in the country have received major good news, as the government is preparing to bring a clear reduction in prices through a new auto policy.
The focus of this proposed policy is to promote the local manufacturing of auto parts, which is expected not only to make cars cheaper but also to give new life to the country’s industry.
During a meeting chaired by Special Assistant to the Prime Minister Haroon Akhtar Khan, discussions were held with a delegation from the auto parts industry regarding the upcoming auto policy and measures to strengthen the local industry.
The special assistant said that the government wants to promote the local auto parts industry through a major policy change.
According to Haroon Akhtar Khan, the central point of the new auto policy is to increase the production of parts at the local level.
Keeping modern requirements in mind, he advised auto parts manufacturers to move towards electric vehicle technology so they can compete in the global market.
Haroon Akhtar Khan directed the Engineering Development Board to work with all stakeholders to formulate a comprehensive and effective policy framework.
He stressed that the new auto policy will be multi-dimensional and will be designed keeping in view the development of the country’s auto sector.
He said that reducing vehicle prices through an effective policy is the government’s priority.
During the meeting, proposals to provide special incentives for the manufacturing of electric vehicle parts were also considered.
The Secretary of Industries said that work is ongoing on these incentives to promote investment in new technology.
The government is also considering changes in taxes and duties in the new auto policy so that vehicles can become more affordable for the middle class.
According to Hammad Mansoor, the policy is expected to be introduced on July 1, while small electric cars priced below one million rupees are also expected this year.
Representatives of auto parts manufacturers told the meeting that despite an increase in the number of vehicle assemblers, their industry is facing difficulties.
According to them, new entrants are using imported local parts with a 25 per cent duty, while they themselves are importing parts through CKD kits by paying a 15 per cent duty.
They stressed that small and medium-sized auto parts manufacturers should be given priority in the new auto policy because they are the foundation of the economy.
They said that the government should ensure real manufacturing in Pakistan instead of focusing only on vehicle assembly.
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