EDB prepares AIDP envisaging incentive regime
By Asad Cheema

ISLAMABAD—Engineering Development Board (EDB) has prepared Auto Industry Development Programme (AIDP) envisaging a detailed incentive regime, workable mechanism, procedure and relevant rules on productive asset investments, technology acquisitions, research & development, human resource development, auto cluster and auto industry development committee.
AIDP also proposed certain solutions to the government on used vehicleimports, auto exports, emission controls, strengthening of safety, standardsand accreditation, registration and licensing system, road network program and motor vehicle examination system.
It contained formation of an auto industry development committee with equal composition of public and private stakeholders, which would be responsible for steering the development of auto industry and to examine,certify and recommend the entitlement of proposed incentives for an assembler or a vendor. AIDP also includes Auto industry Investment policy, commonly referred as new entrant policy which provides eligibility criteria, benefits and terms and conditions for new assemblers of cars / LCVs.
It may be recalled that EDB has drafted the Program after consultations with the stakeholders' starting with a workshop in March 2006. Its basic objective is to develop the industry on sustainable basis through proposing pre-announced five years tariff structure on CKD, CBU and auto parts for all categories of vehicles.
The Program will safely steer the industry through to the transitional phase after the introduction of Tariff Based System (TBS). The stakeholders have been invited by EDB to offer their comments at aidp@edb.gov.pk by 4th December 2006. The full text of the program is also available on its website (www.enginee ringpakistan. com). EDB subsequently, aims to arrange a workshop of stakeholders to finalize the document before submission to the government.