ISLAMABAD: In the new Auto Industry Investment Policy the government has proposed the abolishment of quantitative restrictions and concession being extended to four wheeler segment for a period of 5 years.
According to the draft of the news policy which is also available with this news agency, the concession will provide a reasonable time frame to the newcomers to develop their vendor base. However, concession is linked with achieving the existing level of localization within 5 years. Incentive also provided to those new investors, who had previous assembly operations in Pakistan for revival of closed units.
The five year (2012-17) proposed new Auto Industry Investment Policy caters for all segments of auto-sector, including 2-3 wheeler, so as to bring in technological advancement and variety.Concession for New model / product of different engine capacity if manufactured by existing players also proposed.
According to the new policy import of 100 per cent Complete Knock Down (CKD) whether or not manufactured locally at 5 per cent custom duty rate for a period of five years, subject to the following conditions viz,the new investors or existing players shall bring in new Technology, which would mean introduction in Pakistan for the first time an improved design as a combination of EFI engines, automatic transmission, suspension and environmental controls.
The product has not been previously manufactured and / or the technology has not been used in Pakistan: The new investors / existing players availing concession shall come up with a clear roadmap of 5years for achieving the present level of indigenization within 5 years (i.e. at the rate of 20 per cent per year. – Onlinenews