Prime Minister Shaukat Aziz has constituted a committee comprising Planning Commission Deputy Chairman Dr Akram Sheikh, Secretary Ministry of Industries and Production, Kamran Rasool, and Chairman Central Board of Revenue, Abdullah Yousaf, to prepare a 10-year plan for the growth of local auto sector, Business Recorder learnt on Wednesday.
Sources said that the primary thrust of Pakistan Automobile Industry Development Plan (PAIDP) would be to encourage local manufacturers to increase investment by 100 percent to meet local demand and grab international market share through enhancing capacity.
A meeting recently, held in Prime Minister Secretariat, and attended by top brass of Ministry of Industries and Planning Commission, discussed in detail the PAIDP prepared and submitted by the Engineering Development Board (EDB) that led to formation of the committee to further look into its viability.
Under the plan, manufacturers will be given a target of 0.5 million cars and one million motorcycles production by the end of 2010-11. The plan will also address issues like delay in delivery of cars and bikes and suggests abolishment of illegal premium, which is an abhorred practice in the sector. The government has ensured the industry all-out support and return on investment but it would be required to enhance its capacity.
Meanwhile, representatives of the industry were of the view during the meeting with the EDB that import of used cars scheme and new entrants policy was a major concern for the local industry.
Sources said that the government wanted the industry to enhance its capacity and competitiveness as huge imports of vehicles has been disturbing the country''s balance of payment. The production and sale details since 1995 show that local production of automobile was not enough to fill the demand-supply gap in the local market and the trend continues to widen during recent years.
Total local production till May 2006 of local industry in cars stood at 143,921 against sale of 140,071, whereas production of motorcycles, according to the officials of EDB, was around 600,000.
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