Govt rules out change in auto development policy
Focuses on increasing vehicle production as demand stays high
The committee was informed that under the auto policy, 13 new car manufacturing companies had entered into Pakistan which were interested in manufacturing trucks, cars and motorcycles. PHOTO: REUTERS
The government on Thursday informed the Senate Standing Committee on Industries and Production that it would not bring any changes in the auto policy announced by the previous Pakistan Muslim League-Nawaz (PML-N) government.
The committee, in a meeting presided over by Senator Ahmed Khan, was told by Adviser to Prime Minister on Commerce, Textile, Industry, Production and Investment Abdul Razak Dawood that the Pakistan Tehreek-e-Insaf (PTI) government would continue to enforce the Auto Development Policy (ADP) 2016-21, which was announced in March 2016.
“We will focus on increasing vehicle production in the country as Pakistan is a big country; demand is high while production is low,” he declared.
The committee was told that 55-70% spare parts of cars were being produced in the country. In the case of tractors and motorcycles, 95% and 85% spare parts were being produced in Pakistan. Replying to a question from Senator Sitara Ayaz who asked whether the government would be giving Greenfield status to Pak Suzuki Motor Company’s proposed $460-million investment, the adviser said among the local companies, Pak Suzuki Motor had asked for changing the investment category under the auto policy.
“The company wants to build a new plant with an investment of $460 million along with its existing plant,” he said.
The commerce adviser pointed out that the change in the category would be decided after meeting with and taking into confidence all the stakeholders.
“If they do not agree, we will not be giving Pak Suzuki Motor Greenfield status for its new plant because this category is only for new investors and new technology,” he clarified.
Dawood said negotiations were under way between the government and the auto manufacturer on bringing new technology for the Greenfield status.
Under the Greenfield investment category, investors are allowed 20% exemption from customs duty.
The committee was also informed that under the auto policy, 13 new car manufacturing companies had entered into Pakistan which were interested in manufacturing trucks, cars and motorcycles.
These companies are from South Korea, Japan, France and China. They have promised investment of $1.16 billion in the sector.
A representative of Indus Motor told the committee that the company was not manufacturing Euro-V vehicles because petroleum products of domestic refineries were not compatible with these types of cars. The committee, while terming the Ministry of Industries’ briefing on timely availability of local cars for buyers, their prices and share in gross domestic product (GDP) unsatisfactory, asked it to ensure presence of high officials of the companies in next meeting of the committee.
Published in The Express Tribune, December 28th, 2018.
The committee, in a meeting presided over by Senator Ahmed Khan, was told by Adviser to Prime Minister on Commerce, Textile, Industry, Production and Investment Abdul Razak Dawood that the Pakistan Tehreek-e-Insaf (PTI) government would continue to enforce the Auto Development Policy (ADP) 2016-21, which was announced in March 2016.
“We will focus on increasing vehicle production in the country as Pakistan is a big country; demand is high while production is low,” he declared.
The committee was told that 55-70% spare parts of cars were being produced in the country. In the case of tractors and motorcycles, 95% and 85% spare parts were being produced in Pakistan. Replying to a question from Senator Sitara Ayaz who asked whether the government would be giving Greenfield status to Pak Suzuki Motor Company’s proposed $460-million investment, the adviser said among the local companies, Pak Suzuki Motor had asked for changing the investment category under the auto policy.
“The company wants to build a new plant with an investment of $460 million along with its existing plant,” he said.
The commerce adviser pointed out that the change in the category would be decided after meeting with and taking into confidence all the stakeholders.
“If they do not agree, we will not be giving Pak Suzuki Motor Greenfield status for its new plant because this category is only for new investors and new technology,” he clarified.
Dawood said negotiations were under way between the government and the auto manufacturer on bringing new technology for the Greenfield status.
Under the Greenfield investment category, investors are allowed 20% exemption from customs duty.
The committee was also informed that under the auto policy, 13 new car manufacturing companies had entered into Pakistan which were interested in manufacturing trucks, cars and motorcycles.
These companies are from South Korea, Japan, France and China. They have promised investment of $1.16 billion in the sector.
A representative of Indus Motor told the committee that the company was not manufacturing Euro-V vehicles because petroleum products of domestic refineries were not compatible with these types of cars. The committee, while terming the Ministry of Industries’ briefing on timely availability of local cars for buyers, their prices and share in gross domestic product (GDP) unsatisfactory, asked it to ensure presence of high officials of the companies in next meeting of the committee.
Published in The Express Tribune, December 28th, 2018.