The demand for imported cars is on the rise as due to supply constraint local manufacturers were operating on higher premium. To counter the issue, the government liberalised automobile imports.
The government stance helped in catering for market demand as well as local manufacturers higher margins, said Federal Industry and Production Minister Jahangir Khan Tareen during an interview with AAJ markets.
The minister said there are three main issues the government is focusing on before defining the new policy, adding as three overseas engineering manufacturers (OEM) are operational in the country, the policy should ensure their protection and competitiveness for further growth and expansion.
Tareen said the government wants to provide enough time to new entrants to develop its vendor system. Another issue is to develop vendor industry, for which the government is analysing South African model, he added.
A team has been formed to visit and study the model in detail to be included in the Auto Policy, the minister said, adding the government's major focus is how to define a policy with minimum reforms so that all sectors can flourish.
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