New Auto Policy Would Focus On Automobile Industry’s Growth And Development, Keeping In Mind Affordability, Quality, Localization.

PTI’s MNA and Parliamentary secretary for commerce, industries & production, Aliya Hamza Malik on a talk show with 92 news shared the highlights for the new Automotive Industry Development and Exports Policy 2021-26. She said that there is a huge difference between the upcoming and previous Auto Development Policy 2016-21, which is set to expire this year in June 2021.

She said, “For the first time focus is also on the auto parts industry”, adding, “we have to boost up our exports and have to modernize automobiles”. According to her this would be done via local manufacturing of automobile parts allowing the transfer of technology into Pakistan. This local manufacturing would create jobs for the Pakistani population.

She said, “the incumbent government has attracted an investment of $1 billion into Pakistan’s auto sector as new plants are being made, new entrants have been seen in the Pakistani market and the variety of cars can be seen. Ms. Malik was of the view that the government has successfully created a competitive environment in the industry, which would lead to, “competitive prices and competition amongst manufacturers to provide better safety features.” She said that in the Pakistani market as of now, seven manufacturing plants are already operational, which translates into a lot of employment.

Ms. Malik said under the new Auto Policy to be introduced in 2021 Pakistan would, export two and three-wheelers, and small cars, and when Pakistan’s auto industry would start manufacturing local-made auto parts, it would eventually lead to the introduction of new models of tractors and motorcycles. “We had three things in mind when we were working on this policy including, the safety of the people, and providing affordable means of transportation to the people.”

Where there was going to be a new automobile manufacturing plant, there along with it, auto parts plants are also being made, leading to increased employment in the sector. Quoting a Tweet by Mr. Javed Hassan on Twitter, PTI’s MNA said, “new policy will be a game-changer under the guidance of PM Imran Khan PTI and Khusro Makhdum, the Ministry of Industries and Production is committed to boosting automotive exports, its part manufacturing at local level & bringing huge investment home.”

She said that the government thought about reducing the costs on the customers in terms of reducing custom duty and taxes levied. After so long, the Pakistani automobile industry is growing so much that the Large Scale Manufacturing grew in double digits. On 19th May, the minister for industries and production Makhdoom Khusro Bakhtyar issued a statement regarding the Auto Industry Development and Export Policy 2021-26. According To The Minister, The New Auto Policy Would Focus On The Automobile Industry’s Growth And Development, Keeping In Mind Affordability, Quality, Localization, And Accessibility.

The minister has had meetings with various auto sector stakeholders to discuss the Auto Industry Development & Export Plan (AIDEP) 2021-26, and during the meeting, he said the government is expecting the private sector to increase the footprint of electric vehicles to combat climate change and reduce the oil import bill. Reportedly, the minister in these meetings emphasized the reduction of the cars’ prices so that they become affordable for the large section of society, including middle- and lower-class people.

The associations (PAMA and PAAPAM) have also commended the government support to the private sector amidst the pandemic via giving salary loans, investment loans, and slashing of interest rates to protect the industry, dawn reports. The Minister and other stakeholders then decided to hold such meetings till the policy is finalized.

There have been some concerns regarding the feasibility of EVs in Pakistan, where the experts believe that the Plug-in-Hybrids would be more suitable for a country like Pakistan where the cost of hybrid electric vehicles (HEVs) is lesser than IC(Internal Combustion) cars and Electric Vehicles(EVs). We hope that the small cars are not ignored in the new Auto Policy 2021-26 as PTIs MNA has stated in the talk mentioned above, and the cars are affordable for the masses.

This news was originally published at Global Village Space.