Japan demands incentives for carmakers

Jatoi says new players will be facilitated

ISLAMABAD: A key Japanese government official on Tuesday pressed the minister of industries to provide incentives for the existing players in Pakistan’s auto industry, which is dominated by the Japanese manufacturers.

However, the minister insisted that incentives in the new auto policy would be offered to new entrants into the industry.

The government has decided to provide tariff protection for the new players in order to break the monopoly of existing auto assemblers and manufacturers, who were making money by taking advance payments from the consumers and were also using obsolete technology.

In a meeting with Japanese Vice-Minister for Economy, Trade and Industry Tuneo Kitamura and a Japanese delegation, Industries and Production Minister Ghulam Murtaza Khan Jatoi said the pioneering industrial units would get concessions from the Pakistani government.

“This means that Japanese automobile companies that are not in the market right now and will be the new entrants - such as Nissan or Mitsubishi - will get concessions,” he said.

Jatoi, however, assured the Japanese minister that he would try to extend as much support as he could for the new and existing stakeholders and would ensure the presence of a competitive environment.

According to a statement, Kitamura looked forward to the unveiling of the new auto policy and voiced hope that the Pakistani government would announce incentives for the existing investors as well.

Published in The Express Tribune, November 11^th, 2015.

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