ISLAMABAD, Nov 17: The Engineering Development Board (EDB) has proposed a range of incentives both tariffs and non-tariffs for attracting new investors in the vehicles manufacturing sector, particularly in the vendor sector.

Briefing newsmen on the proposed draft of Auto Industry Development Programme (AIDP) here on Friday EDB Chief Executive Imtiaz Rastgar said that the proposed policy would be finalised after full consultation with all stakeholders.

The new policy is targeted to be finalised by Dec 31, 2006. "We are expecting to receive comments, suggestions and proposals from all stakeholders before finalising the plan," he said and added that the draft policy was posted on the website of the EDB.

The new policy envisaging a detailed incentive regime, workable mechanism, procedure and relevant rules on productive asset investments, technology acquisitions, research and development, human resource development, auto cluster and auto industry development committee.

He said that the auto industry in Pakistan did not produce critical components such as engine parts, transmission and gearing, as the volume of cars is less than what was actually needed for such manufacturing. The new policy is targeted to increase the cars production to 0.5m by the year 2011-12.