ISLAMABAD, Dec 20 : Auto Industry Development Plan (AIDP) is a five-year plan under which the government aims to increase local production of cars from 200,000 in 2005-06 to 500,000 in 2011 by making local auto industry more competitive, creating capacity for local design and innovation, domestic competition human resource development and auto cluster development.

This was stated by Jahangir Khan Tareen, Federal Minister for Industries, Production and Special Initiatives, in a meeting with CEOs and chairmen of leading car assemblers of the country, including chairmen and CEOs of Toyota Indus Motor, Suzuki and Honda.

On the issue of import of used cars, the minister said under the AIDP used car import policy would be regulated in a manner that it doesn’t impede growth of local industry while consumers’ interests are protected.

It was also agreed that indigenization of the local auto industry will be done as required under the AIDP. The minister said that the government was keen to bring indigenization in the local auto industry.

The ministry and the car assemblers also agreed to set up a constitutional mechanism involving both the government and the auto industry for regular assessment of AIDP implementation. The draft was discussed in detail with the car assemblers. The assemblers were in agreement with the ministry on almost all the points of the draft.

The car assemblers said it was encouraging that the government was putting forward a broad framework under which the local industry can grow and they termed AIDP an incentive in itself. The minister directed the CEO EDB to form a group with the assemblers to discuss the AIDP draft further before giving it a final shape.

The meeting was also attended by Hafeez Choudhary, Additional Secretary Ministry of Industries, Production and Special Initiatives, CEO Engineering Development Board (EDB) Imtiaz Rastgar and other officials of EDB and the ministry.

The minister told the participants that the meeting has been scheduled as a part of the ministry’s strategy to listen to all the stakeholders before finalizing the AIDP.