ISLAMABAD, July 29: Pakistan has decided not to seek any further waiver for the continuation of deletion programme for the local automobile industry under the World Trade Organization agreement on trade related investment measures (TRIMs). Industries and Production Minister Jehangir Khan Tareen disclosed this at a joint press conference with Commerce Minister Humayun Akhtar Khan here on Friday.

He said the government had decided to give a tariff protection to the local automobile sector rather than seeking further waiver for the implementation of the TRIMs agreement. In reply to a query, Mr Tareen said that the Engineering Development Board (EDF) and the customs department along with vendors and auto assemblers were working out a comprehensive tariff regime to be applicable on import of parts and accessories for automobiles.

The minister said that these tariffs would be finalized in consultation with all the stakeholders. According to the TRIMs agreement, which came into force on January 1, 1995, all WTO member countries were required to phase out trade distorting measures, including deletion programmes. Developing countries were given an extra five years to do so. At the expiry of five years grace period, Pakistan had sought a further waiver till December 31, 2003 subject to the condition that Pakistan would not ask for further extension in this regard.

Commerce Minister Humayun Akhtar Khan said that amendments had been made to three schemes for Pakistanis residing abroad — gift, personal baggage and transfer of residence — in order to facilitate them in the import of used cars.

Answering a question, the minister said that the import of used cars would not be misused, adding that the facility was only allowed to overseas Pakistanis and the government had no intention to raise revenue from these measures.

The minister said the government was committed to extending every possible support for the development of the auto sector industry. Mr Khan said that a quality check would be introduced at ports to allow import of only those cars which would meet the domestic standards.

He pointed out that due a reduction in import duties in the budget 2005-06, it was expected that around 10,000 to 12,000 new cars would be imported this year to meet the local demand. The commerce minister said that only procedures were relaxed to help overseas Pakistanis import cars under these schemes.