Auto Policy to Increase Installed Capacity of Local Industries by 50 percent - Android

Automotive Development Policy to strengthen the automotive sector by increasing overall installed capacity of local industries up to 418,000 per… Read More

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Federal Minister for Industries and Production, Hammad Azhar, briefed the National Assembly Standing Committee on Industries and Production about the Electric Vehicle Policy in connection with the Automotive Development Policy (ADP).

The 13th meeting of the standing committee was held under the chairmanship of Member National Assembly (MNA), Sajid Hussain Turi.

The Minister informed that under ADP 2016-21, twenty new investors have been granted greenfield status. He said that the government has tried to create competition by granting functional licenses to six new entrants namely:

• M/s Kia Lucky Motors Pvt Ltd;
• M/s United Motors (Pvt) Ltd;
• M/s Regal Automobile Industries Ltd;
• M/s Foton JW Auto Park (PVT) Ltd;
• M/s Master Motors Ltd;
• M/s Hyundai Nishat Motor (Pvt) Ltd.

Hammad Azhar further informed that the total on-ground investment in this regard would be $476 million.

Azhar said that this policy will strengthen the automotive sector of Pakistan by increasing the overall installed capacity of local industries up to 418,000 per annum by June 2021 as compared to 280,000 in the last year.

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Engineering Devolvement Board (EDB) Director-General, further added that tariff announced for Hybrid-electric Vehicle (HEVs) under ADP 2016-21 will provide 50 percent exemption to 1800cc CBUS and 25 percent exemption to HEVs exceeding 1800cc.

Committee Member, Mustafa Mehmud, expressed his concern about the Hybrid vehicles; strongly suggesting that the electric vehicles technology should be launched instead of the Hybrid Technology.

He added that electric charging stations on solar-based technology should be encouraged and the re-use of batteries at home should be made a viable option; quoting the example of the USA-based TESLA batteries which are re-used.

The Minister also informed that as a first step, policies relating to 2-3 wheelers and Heavy Commercial Vehicles (HCVs) have been approved by the Cabinet and will be implemented. The EV Policy for 4 wheelers is being finalized by an inter-ministerial committee formulated under the administrative control of the Planning and Chairmanship of the Minister for Industries and Production.

While talking about the recommendations made by the Committee in its previous meetings regarding the tax regime applied on imported parts and local vendors related to the automobile sector.

The Engineering Development Board (EDB) informed that they have already been recommended for removal of Additional Custom Duty, Additional Sales Tax, and Federal Excise Duty to the government.

The Committee members have expressed their concerns over the higher prices of vehicles in the country and misuse of gift schemes for the import of vehicles.

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The Committee recommended to the Federal Board of Revenue (FBR) for an early release of income tax and sales tax refunds to Millat Tractors and Honda Atlas Car (Pakistan) Ltd, Lahore. The Member’s Policy FBR ensures that compliance reports in this respect will be furnished to the secretariat, shortly.

Director-General Pakistan Institute of Management (PIM) briefed the Committee about the budget, source of training, renting out the PIM building to J.S Bank, and appointments plus promotions made by the institution during the last three years.

The Committee expressed grave concerns on awarding of the PIM building to J.S Bank without adopting proper procedure.

The Committee discussed the termination of 16 stenotypists from (Ministry of Industries & Production) service. The Additional Secretary Administration, briefed the Committee about the reason for their termination in detail. He informed that an inquiry was initiated within the Ministry and Establishment Division against the officers of the Ministry of Industries & Production as well as the Establishment Division, allegedly involved in this matter.

After a detailed discussion, the Committee unanimously recommended that the Secretariat Training Institute (STI) may be requested for the training of terminated stenotypists by providing them a final opportunity on humanitarian grounds.

The meeting was attended by MNAs Sahibzada Sibgatullah, Sajida Begum, Usama Qadri, Muhammad Akram, Ali Gohar Khan, Muhammad Abdul Ghafar Watto, Shandana Gulzar Khan, Rana Muhammad Ishaq Khan, Abdul Rehman Khan Kanju, and Syed Mustafa Mahmud MNAs besides the senior officers of Ministry of Industries & Production and Federal Board of Revenue (FBR).

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