Govt to announce new Auto policy in December
By Adnan Rafique

ISLAMABAD—Government will announce the new Auto policy in the month of December, sources said here on Sunday.
The sources said that ministry of Industries, Production and Special Initiatives is working on the first national auto policy and seeking proposals form different respective stakeholders to finalize the final draft.
The draft will be forwarded to the federal cabinet for approval in the month of December and make public later in this month.
Sources said that it would not only help in bringing down prices of the vehicles, but also give a boost to the industry and the new auto policy would safeguard interests of all stakeholders.
He said about Rs 116 billion will be invested in auto industry by 2006, which would create employment opportunities in the country. New vending and assembling plants are being set up in the country.
He said that production of vehicles in the country has increased to 0.2 million per annum from 50,000 four years ago and it is expected to go up to 0.5 million vehicles per annum as auto policy would help to achieve this target.
The government has relaxed import policy, especially permission to import automobiles under the Gift Scheme, which would improve the supply position by the end of this year.
It will also help in reducing the prices in the local market. The government is planning on long-term basis. Automobile industry here has achieved 50-60 percent deletion and is ready to compete in the international market, he added.
Sources said that faster growth in vending industry had enabled the local automobile sector to achieve expansion in capacity as well as indigenisation.
Sources said that the auto industry was taking measures to get rid of the menace of ‘on-money’ (premium for early delivery) from automobile business in the country, while supply of vehicles would be increased after six months as all assemblers were expanding their production capacity.
He said the automotive parts and accessories manufacturers were clearly heading towards the growth of industry and committed to double investment by 2010 from the current investment volume of Rs 116 billion to Rs 240 billion.
Industrialists will make an additional investment of Rs 70 billion over the next five years, which will create job opportunities for an additional 100,000 skilled people, he added.