KARACHI: Board of Investment (BoI) Chairman Miftah Ismail has said the government would consider auto vendors’ proposal for removing regulatory duty on ‘auto-grade steel’ in the coming budget.
Regulatory and anti-dumping duties were imposed on the import of steel materials to protect the local industry. However, the government would fully support the local auto parts manufacturers in removal of these duties from ‘auto-grade steel raw materials’ which are not manufactured locally.
Speaking as the chief guest at the closing ceremony of Pakistan Auto Show (PAPS) on Sunday, he said no Free Trade Agreement (FTA) would be signed at the cost of local industry economy or employment of people associated with it.
He ensured proper groundwork for FTAs between Pakistan and other countries in a manner that does not affect the production and export of local auto parts.
He stated that the possibility of signing FTAs with several Asian countries, who intend to open trading links for the export of auto parts to Pakistan, are also being considered by industry experts, and full consultation is being carried out with the auto sector as well.
He said Renault, Hyundai, and KIA are committed to set up assembly plants in Pakistan and it would ultimately help auto parts industry to grow. Car market is expected to grow by 30 per cent as existing OEMs are also investing in new plants, he added.
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Zubair Tufail said the Sindh government has announced three Special Economic Zones (SEZs) for foreign investors with lucrative incentives.
These zones would include an Expatriate Enclave with modern infrastructure and tax incentive package such as exemption of custom duties and taxes strictly on import of capital equipment. All investments in these zones can avail full benefits of the SEZ Act, he said, urging local and international businessmen to invest.
