KARACHI, Jan 25: Federal Minister for Industries and Production Jehangir Khan Tareen has assured the local bus and truck manufacturers that measures will be taken to check the misuse of import of used trucks and buses under the Transfer of Residence (TR) Scheme.

In a meeting with senior executives of four assemblers (Hinopak Motors, Ghandhara Nissan, Afzal Motors and Master Corporation) at the PIDC House on Thursday, the minister said that import of used truck and buses of over five-year of age was hurting the local industry and the Engineering Development Board (EDB) had been directed to finalise a long-term policy in this regard by the end of February 2007.

However, the minister asked the assemblers to rationalise the prices of locally-assembled truck and buses.

He also said that meetings with provincial excise, taxation and registration authorities would be held soon and measures would be taken to restrict the registration of illegally-converted trucks into truck tractors.

The minister also said that relaxation in the import tariff for components of dump trucks would be considered to promote the local manufacturing of trailers to meet the demand in upcoming mega construction projects.

The assemblers informed the minister that the current production of trucks and buses was only 20 per cent of the capacity available in the country. They said that the import of used trucks and buses had increased since July 2005 due to relaxation of import policy and its relevant conditions under TR scheme.

They also demanded that old trucks and buses of over five years must not be allowed under the TR or any other import scheme.

Currently 95 per cent locally-assembled trucks are being illegally converted into truck tractor, which is the main hurdle in the modernisation of transportation system, they pointed out.