Finance Minister Shaukat Tarin has stated that the proposed auto policy aims to expand Pakistan’s auto industry by increasing the production of cars, motorcycles, tractors, etc.

The Minister of Finance chaired a meeting to review the Five Year Automotive Development and Export Policy (AIDEP) for 2021-26. The meeting was attended by Federal Minister of Industry and Manufacturing Khusro Bakhtiyar, Adviser to Prime Minister Abdul Razzak Dawood and Dr. Waqar Masood, SAPM on Economic and Tax, Secretaries of the Ministry of Finance, Minister of Commerce, Head of Industry FBR. and other senior officials at the meeting.

The Minister of Finance stressed the need for extensive consultations with key stakeholders to develop a future comprehensive AIDEP program for 2021-26.

Pakistan plans to produce 300,000 vehicles in 22 fiscal year

The Minister of Industry and Production briefed the participants on the highlights of the AIDEP 2021-26 project.

AIDEP’s vision should be to make Pakistan a competitive center for auto and parts manufacturing for the local market and export.

It was also announced at the meeting that the focus will be on increasing competition among locally made cars so that consumers in the country can offer high-quality cars at affordable prices.

This also includes an increase in the export of cars and spare parts to earn valuable currency.

The priority is to ensure consumer welfare by providing affordable cars to middle and low-income groups.

To this end, the government has provided consumers with great convenience by reducing the sales tax on 850 cc cars, as well as exempt from With Holding Tax in the federal budget for 2021-22.

The Minister of Industry and Manufacturing said that new players in the automotive industry could be encouraged, especially with regard to electric vehicles. This, in turn, encourages car companies to invest in related infrastructure in Pakistan.

The Trade Advisor noted that the current tariff structure needs to be rationalized (gradually) in order to increase the automotive industry in Pakistan, taking into account the localization goal.

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