ISLAMABAD, May 2: A 13-member committee has been formed to study the draft auto policy prepared by the Engineering Development Board (EDB). This was decided in a meeting of chairmen/CEOs of car assembly sector and officials of PAAPAM held here on Tuesday with EDB vice-chairman Imtiaz A. Rastgar in the chair.
According to a press release the committee would meet in Lahore on May 9 to finalise its recommendations. Mr Zahid J. Yaqub GM (Policy) EDB will steer the committee proceeding.
Mr Rastgar said that the draft policy was aimed to have a holistic view of the industry to seek solutions on investments, competitiveness and integration in international supply chain. “The proposed draft provides tariff and non-tariff solutions. At this juncture when the industry is switching over from Non-TRIMs compliant deletion programmes to an open and competitive tariff based system, it has the objective for the safe transition of the industry,” he added.
The much debated tariff based system, which works on the principle of higher tariff rates on indigenised parts and lower tariff on un-indigenised parts, would be implemented through the budget 2006-07. In order to make the industry more competitive and in line with the global trends, important measures such as incentives on R&D, designing and styling, testing training and capacity expansion were discussed in the meeting.
The EDB vice-chairman also informed the gathering that in order to sustain the development of industry, technology acquisition, auto cluster development, import export complementation scheme, emission control standards and Auto Industry Development Council would be the steps which were direly needed to establish the industry on strong footings.
The participants were of the view that transparency, consistency and long-term vision for sustainable development of the industry was needed besides ensuring a level-playing field for existing as well as potential new entrant in the auto industry.
Zahid J. Yaqub made a brief presentation on Productive Assets Allowance (PAA) of South African model.