Age relaxation: Govt considering including all vehicles

Government says it is willing to open auto industry for international competitors, China in particular.

ISLAMABAD: The government is considering opening up the country’s automobile industry, particularly  for investors from China, by increasing the age limit for import of all used vehicles, including buses, coaches, wagons, trucks and tractors.

It has been learnt that after the age limit for the import of used cars was relaxed to five years, Minister for Industries and Commerce Mir Hazar Khan Bijarani directed his ministry to prepare a proposal for increasing the age limit for import of other vehicles, except motorcycles and three-wheelers.

According to officials from the ministry for industries and production, the summary of the proposal has been sent for approval to the Cabinet’s Economic Coordination Committee (ECC).

For initiating the immediate production of cars, the ministry has also offered to provide bases in state owned enterprises (SOEs). Chinese and other investors can partner with these SOEs under a mutually agreed equity basis. The proposal also allows reduced customs duties on the import of cars and parts for new entrants.

The government claims that it is keen to break the monopoly of local car manufacturers and to rationalise the prices of cars. Therefore, the government says that it is willing to open its auto industry for other international competitors and for China in particular.

Published in The Express Tribune, December 16^th, 2010.