The industries and production ministry has sought expansion in the importable item-list from India and establishment of two clusters for auto industry, sources told Business Recorder.
In its 14 proposals to the commerce ministry for the incorporation in the Trade Policy, the ministry sought expansion in the existing 770 importable item-list from India. A list of 150 items, in which most of the items are either machinery or industrial raw material, not being manufactured in Pakistan, has been forwarded to the ministry for authorisation of their import from India.
Sources in the Engineering Development Board (EDB) said that as many as 14 proposals have been forwarded to the commerce ministry and meetings with the high-ups of the commerce ministry are being held to finalise the list.
The Board has recommended amendments to the import policy order 2005 to meet the Trade Related Investment Measures after the auto sector switched over from deletion programme to Tariff-Based System in the budget 2006-07, which the CBR has started implementing from July 1.
They said the EDB has held a detailed discussion with the representatives of the industry before finalising the list and ensured that none of the 150 items in the list are manufactured locally.
Moreover, they said the import of these items from India would be cost-effective, particularly in terms of freight and take less time in reaching Pakistani market.
The EDB has also proposed the establishment of two cluster houses for auto industry one in Sindh and other in Punjab for the capacity building of the sector and subsequently to enhance the exports. The EDB has also recommended freight subsidy on the export of motorcycles and refrigerators in the forthcoming Trade Policy for the enhancement of export.
The rate of duty for vendors on import of raw materials and components of cars, buses, trucks, and motorcycles has been reduced.
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