Pakistan Targets 40% Local Production of Car Parts
Notably, the administration has proposed mandatory localization targets for automakers, requiring original equipment manufacturers (OEMs) to rise local content from 10 percent to 40 percent over the next five years under the new auto policy.
Notably, the administration has proposed mandatory localization targets for automakers, requiring original equipment manufacturers (OEMs) to rise local content from 10 percent to 40 percent over the next five years under the new auto policy.
Article outline
- What happened
- Official response
- The key numbers
- The bottom line
Key points
- Prime Minister's Adviser on Industries and Production Haroon Akhtar Khan remarked the proposed policy focuses on localization, exports, consumer interests, vehicle quality and safety.
- Govt to Cap Car Booking Advances At 20% to End On-Money Practices.
- Haroon Akhtar remarked compliance with 69 regulations under the WP-29 Convention would be mandatory to strengthen vehicle safety standards.
- Haroon Akhtar remarked the localization targets would backing local auto-parts manufacturers and create more employment through rose domestic production.
- While certification from an authentic body in the exporting country would be accepted, third-party inspection would additionally be allowed to verify vehicle quality.
He remarked the draft at present circulating in the market is not final and contains speculation. The final policy has been designed after considering the interests of consumers, manufacturers and exporters. Electric Car Buyers to Obtain 5-Year Rs. 1 Crore Loans.
Auto-parts manufacturers would additionally be included in the export policy. Industries exporting auto parts would be eligible for Drawback of Local Taxes and Levies (DLTL) incentives, he continued.
In practice, the adviser remarked the requirement for pre-inspection certificates for imported vehicles would remain in place. He continued that stakeholders had agreed to vehicle verification through the Pakistan Standards and Quality Control Authority (PSQCA).
While certification from an authentic body in the exporting country would be accepted, third-party inspection would additionally be allowed to verify vehicle quality. The certifying firm would have to establish a subsidiary office in Pakistan to prevent fake documentation. PSQCA would register third-party inspection firms according to prescribed standards.
He continued that consultations had been completed with associations representing commercial vehicle importers on proposed changes to vehicle imports. Stay Connected with ProPakistani.
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In short, pakistan Targets 40% Local Production of Car Parts is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.
