The Pakistani Prime Minister took the decision to review the long-term auto policy prepared by Ministry of Industries and Production in consultation with all stakeholders. The meeting was attended by Minister for Industries and production Mr. Jahangir Khan Tareen, Deputy Chairman Planning Commission Dr. Akram Sheikh, senior officials and leading automobile manufacturers. The Prime Minister asked the Ministry to submit detailed auto industry development programme (AIDP) by March 31, 2007.

Addressing the meeting, the Prime Minister said the government attaches great importance to the auto industry, as it is a key driver of economic growth and a creator of jobs and employment in the country. The Prime Minister said the government is keen that apart from meeting the growing local demand for autos, the auto industry should get into the export of auto parts which is a volume and niche business requiring specialization.

He said the government recognizes auto industry as an important stakeholder and wants it to expand in keeping with the demand that is expected to grow significantly in view of the increase in the size of the middle class and the economy. The Prime Minister said the long-term auto policy will provide the investors predictable and transparent environment and will facilitate long-term investment, encourage growth and competition, enhance competitiveness and stimulate innovation.

The government is acting as an enabler for the private sector and will ensure consistency and continuity of policies to facilitate auto industry’s integration into the global supply chain, the Prime Minister said. The Prime Minister also emphasized the need for indigenization of the auto industry, which, he said is now getting increasingly possible with the development of engineering industry in the country.

The Prime Minister assured that the government will regulate the import of used cars in a manner that the local industry is not impeded. Minister for Industries and Production Mr. Janangir Khan Tareen made a presentation about the salient features of the policy. He said the important pillars of the policy include a five year tariff plan, human resources development plans, auto cluster development, technology acquisition support, incentive for higher value indigenization, penalty for not achieving further indigenization and institutional mechanism including industry representatives for regular assessment and review of progress under the policy.

The representatives of the private sector appreciated the government for preparing the policy which, they said, is truly historic and far reaching and had the consent and support of all stakeholders.

Source: http://paktribune.com/news/index.shtml?164367