How the government’s new ‘auto policy’ will end the monopoly of big automakers
The introduction of the new policy for the auto industry is a logical step forward.
The government has been planning to formulate a new auto policy to end the monopoly of big automakers in the local automotive market.
It has been highlighted in the policy that the Auto Development Policy (ADP) 2016-21 would expire by the 30th of June, 2020. The Ministry of Industries and Production has stated that the new policy will allow for cars’ import.
The policy provided numerous concessions and benefits to the automakers seeking to enter the Pakistani market. Moreover, many carmakers had either entered or made their comebacks to a warm reception by Pakistani consumers due to the current ADP.
The report further says that the new policy will cancel the concessions given to entrants and that the rates of the taxes on the import of cars will be reduced. Additional benefits will be considered to encourage the import of cars.
Earlier, the federal government directed the Ministry of Industries and Production to investigate the automotive firms and determine the details of their inability to increase manufacturing capacity.
The automakers’ incompetence to meet the local market demands has given rise to the illegal premium culture.
The introduction of the new policy for the auto industry is a logical step forward. However, supporting imports instead of country-based manufacturing is a questionable move against Prime Minister Imran Khan’s vision for a self-reliant and stable auto industry.
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