ISLAMABAD (September 10 2006): The government has said that a long-term auto industry development program would be finalised soon following productive discussions with the stakeholders.Talking to Business Recorder, Engineering Development Board (EDB) Chief Executive Officer Imtiaz Rastgar said the plan has been prepared keeping in view the long-term needs of the industry which give eight-year clear road map for investment.
The demand for long-term auto policy has been fulfilled in the form of new plan, which not only gives a clear timeframe but also tariff structure for about eight years to the industry for expanding their units.
To a question about a policy for new entrants, he said the rules are being prepared and government wants to open the doors for new investors in the auto sector. The new entrants in the automobile sector would create competition, he added.
Meanwhile, it was learnt that the comments on new plan are yet to be received from the industry which was earlier sent to the manufacturers for their inputs about one and half months back.
The plan was sent to the industry in July after Prime Minister Shaukat Aziz had given a go-ahead signal and constituted a committee for negotiation with the industry. The prime minister was also given a detailed briefing on the auto program prepared by the EDB.
Planning Commission Deputy Chairman Dr Akram Sheikh is heading the committee, while Industries and Production Secretary Kamran Rasool and Central Board of Revenue (CBR) Chairman Abdullah Yousaf are the members.
Under the plan, manufacturers will be given a target of producing 0.5 million cars and one million motorcycles by the end of 2010-11 for which the government would provide all-out support to the industry.
The total car production till May 2006 is 143,921 against the total sale of 140,071, whereas the production of motorcycles, according to EDB officials, stood at 600,000. However, the industry has been demanding for reduction in depreciation allowance from 2 to 1 percent and at least three-month registration mandatory at the person’s name prior to importing a car under transfer of residence scheme.

[Source:brecorder]