The Engineering Development Board (EDB) and automotive industry have finalised the implementation modalities of the non-tariff portion of Auto Industry Development Plan (AIDP), sources told Business Recorder on Monday.
They said that the four EDB committees, ie human resource development, technology acquisition, productive investment incentives and setting up two auto clusters have submitted recommendations while the final meeting between EDB and industry representatives is scheduled for Thursday (March 29).
These recommendations will then be handed over to the minister and the representatives may have a meeting with the Prime Minister on March 31, the last date for the finalisation of the AIDP non-tariff portion. It may be recalled that government had already approved tariff part of the AIDP.
The AIDP prepares by EDB offered five-year pre-announced tariff, establishment of a fund worth Rs 6 billion for competitiveness, technology acquisition, research and development and two auto clusters to steer the industry on way to sustainable growth.
The non-tariff policy incentives included productive investment measures, an auto industry development committee, establishment of funds for the auto industry competitiveness, research and development, technology acquisition and a policy that has attraction for exporters.
It also includes establishment of two auto industry clusters - one in Karachi and the other in Lahore to enhance inter-firm cooperation and encourage innovation and specialisation in the production and supply chain. Moreover, the proposed plan also offers Rs 6 billion fund on matching grants for the industry's competitiveness, research and development, and technology acquisition (TAF).
It is also proposed that government technical institutes should be attached with the automobile companies for practical training, similar to "house job concept" in medical profession. It is also proposed that the government may waive the tax liability on the cost of training, which will be based on quality and the number of persons trained by these institutes.
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