ISLAMABAD: Minister for Commerce Engr. Khuram Dastgir Khan, assured considerate deliberation to look for a way forward on the issues raised by a high level delegation of Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM).
Commerce Minister assured the delegation about thorough internal discussion at Ministry level prior to taking any final decision in this regard. A high level PAAPAM delegation held a meeting with the Commerce Minister and raised problems and issues faced by their sector.
A well placed source at Ministry of Commerce (MoC) told Customs Today that other officials of Ministry including DG Domestic Commerce Wing Attique Rehman, Joint Secretary Waqar Shah, DG Trade Policy Wing Raheela Tajwar, and Director Trade Policy Wing Kausar were also present in the meeting.
The source said that PAAPAM had mission to build competitive edge in local automotive parts industry by maximizing local contents to at least 70% for auto-mobiles manufactured in Pakistan by the year 2020, by creating an environment that was conducive to innovation, rapid modernization and was in sync with latest Research and Development.
However, the source said that sector was facing enormous problems at the hands of policies followed by regulatory authorities and departments as well as Ministry of Industries and Production. The source said that delegation sought Minister’s support on all issues including the New National Auto Policy which was near finalization.
“A committee of the Economic Coordination Committee of the Cabinet had formed a committee headed by the Federal Minister for Water and Power to devise new Auto Policy” the source said adding that Chairman Privatization Commission Muhammad Zubair was the other member of the committee, but surprisingly Federal Minister for Industries and Production Abbas Khan Afridi was not made part of it.
“The delegation also apprised the Minister that second hand import of vehicle was hurting local manufacturing therefore higher ratio of import duty should be levied on the import of used vehicles” source added. The delegation also told the Minister that Pakistan had a vast potential for auto industry because it was the sixth biggest population in the world.
The source said that delegation told Minister that new auto sector policy had proposed 80% reduction in Customs duties for the entry of manufacturers into the Pakistani market for the next five years in order to put in place competitive mechanism and reducing car prices in the country.
“For new brands of cars from the existing car manufacturers operating in Pakistan, the duty reduction is proposed to be available for two years in order to give more choice to consumers at affordable prices” the source added saying that delegation sought Minister’s support on the new policy at ECC.
The source said that after hearing the viewpoint of the delegation, Minister for Commerce assured the delegation their reservations would be discussed at internal meetings of the officials of the ministry. “Minister observed that the concerned officials would hold another meeting with PAAPAM to seek a way forward after in detail discussions on all issues” the source observed.
“Minister apprised the delegation that consumer welfare and promotion of manufacturing was desired therefore suitable way forward would be devised” the source added.
