- Tarar says new policy aims to boost local vehicle production, exports.
- Info minister says all stakeholders consulted in drafting auto policy.
- Haroon Akhtar says lower import duties to cut vehicle manufacturing costs.
The federal government on Friday announced a new policy with a particular focus on affordable vehicles and electric vehicles (EVs).
Addressing a joint press conference in Islamabad, Information Minister Attaullah Tarar and Adviser to the Prime Minister for Industries and Production Haroon Akhtar Khan announced the new auto policy.
The information minister said the new policy would promote local vehicle manufacturing and exports, while ensuring affordable, high-quality and environment-friendly vehicles for the common man.
He said the new auto policy had been awaited with great anticipation. The minister said all stakeholders were consulted during its preparation, technical data was analysed, and models followed in different countries were studied and compared.
He said that for decades Pakistan kept import duties on vehicles high to protect the local industry. Unfortunately, despite all the protection, the industry failed to introduce the innovation and features available to ordinary consumers elsewhere. The purpose of protection was to improve the quality and facilities of vehicles for the common man.
The minister said Prime Minister Shehbaz Sharif has directed that facilities be created for the middle class in the auto sector. He noted that girls and women are increasingly using electric scooters to reach schools, colleges and offices, and that the use of electric motorcycles and scooters is growing fast, which he called a need of the hour.
Tarar said the prime minister has paid special attention to the sector, and that promoting EVs will benefit the environment.
He added that it will also reduce the country’s growing oil import bill, the burden of which ultimately falls on the poor. He said the nation is aware of fluctuations in petroleum prices, but prices are now coming down and the fuel relief scheme is continuing. If the oil import bill falls, he said, the savings can be spent on public facilities, infrastructure, health and education.
He described the new auto policy as comprehensive, with special incentives for EVs, while promoting local manufacturing is also essential. He said the local industry cannot be fully beneficial until vehicles are exported after manufacturing and jobs are created.
The minister said the policy does not affect petrol-driven vehicles of up to 800cc used by the common man, which remain under existing facilities. He said it takes into account the environment, the import bill and the economy.
To promote clean energy, those setting up charging stations have been exempted from customs duty, and sales tax on them has also been reduced.
Tarar said Pakistan has big opportunities in fully electric vehicles and invited manufacturers to set up plants, produce vehicles and export them, so that Pakistanis get affordable, good-quality vehicles.
He said petrol takes up a large share of the common man’s budget, and oil prices are among the major causes of inflation. Just as the nation brought a revolution through solar energy, he said, the prime minister’s launch of the new auto policy is a revolutionary step. He said it will provide every citizen with affordable, quality and eco-friendly transport, reduce the import bill, boost the economy and help ease inflation.
For his part, Haroon Akhtar said the policy is based on six key pillars: affordable vehicles, particularly for the middle and lower-middle classes; boosting exports; promoting electric vehicles; increasing localization; improving vehicle safety; and ensuring transparency.
He said import duties have been reduced to lower vehicle manufacturing costs, which would help make locally manufactured, affordable vehicles more accessible, especially to low-income consumers.
He added that reducing the prices of vehicles below 1300cc was a special priority of the premier.
The adviser further highlighted that specific measures have been introduced to strengthen localisation and promote automobile exports.
Replying to a question, Tarar said the local industry enjoyed protection and a monopoly-like market for decades, which prevented innovation and better facilities for consumers. He said the new policy will increase competition, and that the prime minister has stressed in every meeting that the entry of more manufacturers will benefit the common man.
On a question about non-custom-paid vehicles in Khyber Pakhtunkhwa, He said the province now has a transparent set-up working on the issue. A formal policy is being framed so that no vehicle remains unregistered and all are registered through the Customs and Excise departments. He said such vehicles have been used in terrorist incidents in the past, and that this and other issues in the province are being corrected.
