KARACHI, Feb 22: Federal Minister for Industries and Production Jahangir Khan Tareen said on Thursday that the auto policy will bring an investment of Rs250bn in the next five years.

He was talking to media at the inauguration of Pakistan Auto Parts show 2007, being organised by Pakistan Association of Automobile Parts and Accessories Manufacturers (Pappam) at the Expo Centre Karachi.

He said that most of this investment will be made by the vendors for capacity expansion to meet the target of 500,000 vehicles per annum by 2011-12.

He said the government was focussing on automobile sector. “We wish to make this sector as a major contributor to the GDP of Pakistan,” he added.

Tareen said that the government also wanted to ensure production of quality vehicle matching the production standards of Japan. For this reason a company will be in place by the next month to enhance skill training in the automobile sector, he noted.

The minister pointed out that auto industry development plan (AIDP) will be ready by March 31, 2007 for presentation to the federal cabinet. Currently, Engineering Development Board was actively busy in finalising the paper.

This plan will offer incentives to the automobile sector for the export of auto parts. This will also have targets for the industry and encourage local production of higher value-added components of automobile, he added.

To a question, he said that auto industry has to expand production to meet local demand for cars and supply them to consumers without own money. ”If they cannot do it, the government will continue to allow import of vehicles so that consumer should not suffer,” he added.

Replying to a question regarding cement prices, the minister said that if the cement manufacturers failed to bring down price at the old level, the government can impose a ban on their export and also suspend payment of rebate.

“We may also revert back to the old import policy allowing payment of Rs 65 per bag to the importers to meet local demand.”—APP