The government has allowed import of custom-duty free new cars of engine capacity not exceeding 1350cc to Pakistani disabled nationals for personal use.
The decision announced vide Customs Notification No. SRO 277(1) 2010 dated 27th April, 2010, of the Revenue Division, has been taken in pursuance of a government decision announced vide Notification No 16(1)/2006 – Import II, dated the 28th September 2009, issued by the Ministry of Commerce, to allow import of duty free cars for personal use by disabled persons to overcome the disability, subject to fulfillment of criteria and conditions laid down in the policy.
According to the conditions, at the time of import of cars, the disabled person must have import authorization certificate issued by the Ministry of Commerce in his or her favor. Moreover, only one car will be allowed to be imported by a disabled person, and the car should not be sold or otherwise transferred to any person before the expiry of five years from the date of its arrival in Pakistan.
The Government has approved Auto Industry Development Programme (AIDP) prepared by Engineering Development Board to provide a predictable and transparent investment opportunity. Economic Coordination Committee (ECC) of Cabinet on November 13 cleared a summary on the subject submitted by the Ministry of Industries, Production and
AIDP has been developed to facilitate and encourage the investment, domestic competition, enhance competitiveness and stimulate innovation through technology
acquisition, human resource development, capacity expansion, auto cluster development etc.
The programme is based on the principles including, encourage continuation and increasing indigenization, facilitate auto industry's integration into the global supply chain and the used vehicles import policy will be regulated so as not to impede the growth of the local industry while protecting consumers' interest.
AIDP provides the targets and goals and a clear development programme through a road map for the next 5 years. Realizing that the rapid growth in auto industry is difficult to sustain without efficient human resource. In order to fill the deficiency of skilled personnel, Auto Industry Skills Development Company (AISDC) will be established which will be jointly managed by a board with representatives from industry and the
government. Two centers of excellence will be established under the management of AISDC.
Productive Asset Investment Incentive (PAI) provides incentives against the newly installed productive assets to stimulate investments in the production capacities
of auto part manufacturing and to optimally utilize such capacities through supply of output to the vehicle assemblers in the country. Since technology level remains low in the auto parts manufacturing due to high cost of technology acquisitions and to enhance the technology level, quality and encourage further localization, matching grants will be provided under the Technology Acquisition Support Scheme.
Furthermore, to complement mutual support and synergy of the vendors, AIDP provides the establishment of two auto clusters one at Lahore and Karachi each for which government has already acquired the land. AIDP also provides for Auto Industry Investment Policy (AIIP) for the investors to start manufacturing of vehicles in the country. An Auto Industry Development Committee (AI DC) will be established with the objective to provide focused and continued attention to the auto industry at a government private level. AIDC will have a regular dialogue and effective communication with the industry and it will steer the
implementation of AIDP and conduct an assessment and review of the policy initiatives of AIDP annually and up to 5 years to evaluate the effectiveness of AIDP. AIDC will recommend corrective measures when ever necessary to keep the AIDP on its course to achieve the laid down objectives. While formulating the AIDP, best practices of auto producing countries were duly considered and extensive consultations were held with the
stakeholders including the 8th March 2006 and 12th December 2006 workshops at Islamabad followed by a series of EDB's meetings separately with assemblers of Cars/LCVs, two/three wheelers, tractors, HCVs, PAMA, PAAPAM and parts manufacturers. Government has termed the AIDP as a well structured document and a clear roadmap which will lead the auto industry to a sustainable, innovative and
competitive development and to enable the industry to attract investment and