September 4, 2003	Thursday	Rajab 6, 1424

ISLAMABAD, Sept 3: The government on Wednesday notified terms of reference of the task force on auto industry which include a review of the WTO tariff issues and the possibility of getting extension of deletion programme for a reasonable period of time.

The 8-point terms of reference are: i) Determine the cost of locally procured deleted items. ii) Evaluate the cost of imported CKD kits. iii) Determine the actual cost of production of locally manufactured cars and tractors. iv) Make proposals, duly supported by empirical data, to reduce the prices of locally manufactured cars and tractors. v) Look into the reasons for setting longer delivery schedule (6-8 months) by the manufacturers in the context of total production and the demand, and suggest appropriate measures to cut short the delivery period. vi) WTO tariff issues. vii) Extension of deletion programme. viii) To verify and compare prices of locally manufactured cars and tractors with their prices in other countries including India.

The Federal Cabinet on July 19, 2003 had decided that auto industry should be given clear direction to reduce prices of locally manufactured cars and tractors failing which import of second hand cars and tractors would be allowed.

Meanwhile, it has been learnt that the automobile industry lobby has mounted a campaign to persuade the government not to do anything that would reduce the industry’s margin of profits. The industry does not seem to be ready to expand production to meet the sudden and steep increase in demand and bring down prices.