Federal Minister for Industries and Production Makhdoom Syed Murtaza Mahmud directed the Engineering Development Board (EDB) to prepare a plan to curb the issue of On-Money so that consumers could get vehicles timely at justified prices.
The Minister noted that the new policy would accelerate growth and development of the automotive industry together with quality and indigenization of industry, said a press release issued here Friday morning.
The Federal Minister said this while attending a briefing session on the automobile industry this morning.
Federal Secretary, Jawwad Rafique Malik, CEO, Engineering Development Board, Raza Abbas Shah and senior officers of the Ministry attended the meeting.
The Minister further highlighted that the government would like to increase the footprint of electric vehicles (EVs) to mitigate the challenges of global warming.
The CEO of EDB gave an overview of the automobile sector of Pakistan vis-a-vis two broad spectrum policies including Automobile Development Policy 2016-2021 and recently launched policy i.e Auto Industry Development and Export Policy (AIEDP) 2021-2026. He briefed the minister that the later version of auto policy ADP incentivized entry of 7 new auto players in market while AIDEP was focused on value addition in auto making by 30 percent, bi-annual update of SRO 693, exports targets for auto parts as well as CBUs, adoption of safety regulations through legislation and promoting EVs and new technologies in auto industry.
The CEO of EDB stated that the country had been producing 92 percent tractors, 95 percent motorcycles and 55 percent cars locally. He apprised the Minister that 08 licenses had been issued to EV based OEMs for production of 2-wheelers and three-wheelers in Pakistan. He noted that payment of amounting Rs. 4 billion had been reimbursed to consumers for late delivery of vehicles under consumer protection clause of AIEDP. Despite pandemic 215, 776 units of cars including jeeps, SUV, LCV were locally manufactured in last year and the target of 3 lac productions will be achieved this year, he stated.—APP