ISLAMABAD: Finance Minister Shaukat Tarin Friday assured his full backing to the final launch of the new auto policy, while chairing a meeting to review and finalize it.

The Minister for Industries and Production briefed the meeting that the purpose of the new policy is to provide affordable small cars (850cc-1000cc) as well as to promote localisation in domestically assembled cars and produce exportable surplus of auto-parts of 2-3 wheelers.

Additionally, the policy will aim at increasing the competition in the local market, so that people in Pakistan could enjoy better technology at affordable prices.

An official, on condition of anonymity, said that the government is considering providing additional custom duty (ACD) relief up to 1000cc to attract new entrants in the industry.

He said that the initial estimates suggest that relief of ACD would have a revenue impact of around Rs12 billion, whereas, around Rs15 billion on account of the ACD are pending with the auto makers.

Sources said that some decision has been taken and is expected to be announced in the coming few days as the final round of the meeting was held with the Adviser to the Prime Minister on Revenue and Finance, Dr Waqar Masood.

The Minister for Industries also discussed various concessions that could be offered to the electric vehicles to increase the number of vehicles imported and install the related infrastructure in Pakistan.

Other pending issues such as the payment of the ACD by the auto sector to the government also came under discussion.

The industry representatives agreed to resolve the issue amicably for its final settlement.

Federal Minister for Industries and Production Makhdoom Khusro Bakhtyar, Adviser to the PM on Commerce Abdul Razak Dawood, and SAPM on Finance and Revenue Dr Waqar Masood also participated in the meeting along with senior officials from the Industries and Production, Commerce, and the FBR.

Copyright Business Recorder, 2021