Federal Minister for Industries and Production (MoIP), Rana Tanveer Hussain on Tuesday advised the auto industry to work to improve quality, price and exports from the auto industry in the international market.
ISLAMABAD, (UrduPoint / Pakistan Point News – 20th Aug, 2024) The Federal Minister for Industries and Production (MoIP), Rana Tanveer Hussain on Tuesday advised the auto industry to work to improve quality, the price and exports from the automotive industry in the international market.
Presiding over the fifth meeting of the Auto Industry Development and Export Committee (AIDEC), the minister ordered a sub-committee to review and address the problems of the Auto Industry every quarter in terms of regulatory assistance necessary for exports in the international market.
He also ordered for the formulation of an Auto Parts Manufacturing Policy aligned with its allied industry as localization of auto parts will result in competitive pricing of Pakistani manufactured vehicles in the market international, according to a press release.
The Committee deliberated on the Implementation of Policy Instruments in AIDEP 2021-26 regarding the results of export targets from existing OEMs (original equipment manufacturers) and New Entrants.
It also deliberated on the creation of a mechanism for the Addition of Parts in SRO 693(I)/2006, a new addition of parts components in SRO 693(I)/2006, implementation of Regulation WP 29, phasing out of Concessions on the import of CKD components of Motorcycles and Tractors from SRO 656(I)/2005 to Fifth Schedule, import of old and used Auto Parts and incorporation of EV Specific components for EVs 4-wheelers (8703.8090) under 5th Schedule to the Customs Act.
The meeting also discussed the removal of sales tax on local inputs purchased under the export facilitation scheme (EFS), tax protection on city and intercity buses assembled in the place (diesel, hybrid and electric) and the imposition of 25% really regulatory:
On the occasion, representatives of the auto industry highlighted the difficulty in exporting vehicles from Pakistan due to the imposition of an increased Duty and Tax structure.
They emphasized on the urgent need to sign Free Trade Agreements (FTA) / Preferential Trade Agreements (PTA) and acquire consistent policies to enable the localization of parts and components to make the 2, 3 and 4 wheels to achieve competitiveness in the International Market.
Auto parts dealers, on the other hand, pointed out that once a part is localized, the part variant is discontinued, therefore, the dealers incur huge losses. They recommend that if an OEM locates a part, it should be used by other OEMs who need similar parts and the localization of parts and subcomponents should be limited in time.
The Committee agreed that there should be a ban and penalties imposed on the import of used auto parts.
The meeting was attended by MoIP Secretary, Saif Anjum; EDB CEO, Engineer. Khuda Bukhsh; Senior officials of MoIP, Engineering Development Council, Ministry of Commerce, Science and Technology, FBR, Ministry of Communication, and Chairman PAMA, Chairman PAAPAM, Vice Chairman and dignitaries from leading automobile 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.
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