As per the reports, the government is planning to formulate a new autopolicy to end the monopoly of certain car companies in the local automotivemarket.
It also highlighted that the Auto Development Policy (ADP) 2016-21 willexpire by 30 June, and that the Ministry of Industries and Production hasstated that the new policy will allow for the import of cars.——————————
The policy provided numerous concessions and benefits to the automakersseeking to enter the Pakistani market. Moreover, owing to the current ADP,numerous carmakers had either entered or made their comebacks to a warmreception by Pakistani consumers.
The report further states that the new policy will revoke the concessionsgiven to entrants and that the rates of the taxes on the import of carswill be reduced. Additional concessions will be considered to encourage theimport of cars.——————————
A few days ago, the federal government had directed the Ministry ofIndustries and Production (MoIP) to begin an investigation of theautomotive firms to determine the details of their inability to increaseproduction capacity.
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The automakers’ inability to meet the demands of the local market has givenrise to the illegal premium culture whereby certain dealerships add anadditional amount over a car’s MSRP.
The introduction of the new policy for the auto industry is definitely alogical step forward. However, encouraging imports instead of country-basedmanufacturing is a questionable move as it goes against Prime MinisterImran Khan’s vision for a self-reliant and stable auto sector of Pakistan.
