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ISLAMABAD: The Ministry of Industries has decided to re-validate the licenses of auto manufacturing units operating in Pakistan within the next few days.

In this connection, a high-level meeting was held at the Engineering Development Board (EDB), here on Wednesday to discuss and review the performance of set targets for the local auto industry of the country.

Pakistan’s auto industry seeks ‘remission’ after failing to meet export target during FY23

According to reliable sources, while discussing the decisions of the previous meeting held in September 2023, the stakeholders expressed reservations over the failure of auto industry to meet certain set targets and decided to revalidate the licenses.

Officials while rejecting the rumours circulating on some sections of electronic media on the cancellation of auto manufacturing licenses said that no such decision has been taken or even discussed in the meeting. The government is fully supporting the development of the local auto industry, the officials added.

Copyright Business Recorder, 2023

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Tariq Qurashi Oct 26, 2023 11:46am
These car assemblers need to be given localization targets. For example they should localize 10% by value of each vehicle per year. Each assembler should be given an incentive if they localize, and those manufacturers that don't localize should be penalized. For example a car assembler that meets its localization targets could be given a tax incentive. An independent international or local team should assess the percentage of localization each year. This assessment must not be done by a government or semi-government body because it will likely to just lead to rent seeking.
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Abba ji Oct 27, 2023 12:21pm
Govt giving out targets but failing in its own, what an irony.
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Maqbool Oct 27, 2023 04:47pm
@Tariq Qurashi, this was already done and suddenly when this condition is not met by Honda, Toyota and Suzuki, and by years and years, and GOP give them a pass not to completely manufacture locally which was a pre condition of their manufacturing permissions . Well over a decade of no action by Government . Localized targets were pre conditions to all car assemblers . It’s too obvious to all .
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