ISLAMABAD – The government has started devising a new auto policy that willcome into effect from 2022.
According to reports, a meeting of the Engineering Development Board (EDB)took place that was headed by Abdul Razaq Dawood, the Adviser for Commerce,Textile, Industry, and Production, and Investment.
The meeting was attended by all the relevant auto sector stakeholders andthe manufacturers were promised that their input will be taken whileformulating the new policy. The new policy will help boost the auto sectorand is said to offer more incentives than the current one.
The Auto Development Policy (ADP) 2016-21 was instrumental in enticingmultiple companies from around the globe to invest in the local autosector. It offered multiple tax-based incentives to the new entrantsincluding auto giants such as Hyundai, KIA, and others. The policy grantedGreenfield and Brownfield status to multiple companies that helped ineither establishing a new manufacturing facility or reviving an existingassembly plant.
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Multiple allowances were made when it came to importing CBUs and thecustoms duty was reduced on imported parts. The new policy will seek tobuild upon the work done by the current ADP and help facilitate the entryof new auto players while increasing competition in the market.
