The Senate Standing Committee on Industries and Production has been informed that the proposed new auto policy is expected to receive Cabinet approval within the next two weeks.
The committee meeting, chaired by Senator Saleem Mandviwalla, discussed the delay in finalizing the policy and its potential impact on consumers, local manufacturing, investment and employment.
Adviser to the Prime Minister for Industries and Production Haroon Akhtar Khan said the government was working to balance consumer interests with the needs of the local automobile industry. He added that the policy aims to encourage local manufacturing, attract investment and create employment opportunities.
The government is also considering tariff measures to restrict imports of completely built-up (CBU) vehicles while promoting local production of components used in completely knocked-down (CKD) assembly.
The committee was further briefed on measures to promote electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs). The government is considering reductions in duties and other costs to make these vehicles more affordable. The proposed policy may also allow one-time imports of electric vehicles to improve their availability in the local market.
Haroon Akhtar said automobile companies had not met their export targets. He also clarified that vehicles imported under the gift scheme can only be gifted to a blood relative as a one-time facility, while commercial imports would remain subject to applicable duties and taxes.
Representing the Pakistan Association of Automotive Parts and Accessories Manufacturers, Aamir Allawala said around 50 to 60 percent of parts used in vehicles assembled in Pakistan are produced locally. He warned that the proposed tariff could increase CBU imports and negatively affect local assemblers and auto parts manufacturers.
Senator Saleem Mandviwalla stressed the need to protect investment and employment in the automobile sector. He referred to concerns that around 2.2 million jobs could be at risk if the local industry does not receive adequate protection.
Senators Khalida Ateeb and Syed Masroor Ahsan also emphasized the importance of protecting local automobile manufacturing and the livelihoods linked to the sector.
The committee expressed hope that the government would finalize the policy within the proposed timeline and address the concerns of both consumers and local manufacturers.
