ISLAMABAD, May 22: The Economic Coordination Committee (ECC) of the cabinet on Monday imposed 15 per cent regulatory duty on export of sugar and approved a number of budget-related measures. It also approved two incentive packages for new automobile manufacturers and allowed import of trucks.
Prime Minister Shaukat Aziz presided over the ECC meeting.
Economic adviser Dr Ashfaq Hassan Khan told newsmen after the meeting that the ECC also allowed in principle import of 300 completely-built black cabs and the setting up of an assembling plant in the country.
He said the inflation as measured by sensitive price indicator increased by 0.5 per cent in the week ending May 18 over the preceding week, in which, prices of 21 items increased, seven items declined and another 25 items remained stable. The SPI increased by 6.67 per cent in the July-April period, he said.
IMPORT OF BLACK CABS: Dr Khan said the ECC had allowed the import of black cabs on the pattern of tractors’ scheme. Their import will be exempted from customs and other duties and taxes.
He said an assembler would be required to set up an assembling plant, which would be exempted from deletion programme of the Engineering Development Board.
POLICY FOR NEW AUTO-MANUFACTURERS: Dr Khan said the ECC also approved a proposal of the industries ministry to diversify auto-manufacturing to create competition as the existing market was dominated by Japanese manufacturers.
He said new entrants would be required to have an overseas annual manufacturing capacity of 500,000 units besides possessing sufficient resources to set up their plants in Pakistan and a significant presence in the world market. Pakistan’s current annual production capacity is about 180,000 units.
The new entrant will be allowed to import 100 per cent completely-knocked down kits (CKD) and components at existing duty rates, which are applicable for parts not manufactured locally, for three years from start of operations.
IMPORT OF TRUCKS: He said a number of incentives for the import of completely-knocked down and completely built units of the big trucks had been approved and would be announced in the budget.
COMPENSATION FOR DAEWOO: The ECC also allowed tax and duty-free import of 16 buses to Daewoo Express to replace 16 buses that were torched in a February 15 attack in Peshawar.
EXEMPTION ON EARTHQUAKE-RELATED MATERIAL: Dr Ashfaq Hassan said the meeting also exempted equipment brought in under earthquake rehabilitation donations from all taxes and duties while the import of heavy machinery for construction of bridges and roads was also exempted from all duties and taxes.
KESC SUBSIDY: The ECC decided not to allow increase in power tariff for the KESC approved at the rate of 38 paisa per unit by Nepra that involved Rs1 billion subsidy.
