Auto industry key to economic development, says Tareen
By Asad Cheema

ISLAMABAD—Minister for Industries, Production and Special Initiatives, Jahangir Khan Tareen Tuesday underlined the importance of auto industry and termed it key to economic development of the country.
He said “Auto industry because of its forward and backward linkages and economic multiplier effects will contribute to register a robust growth for considerable period”. He stated this while inaugurating a workshop on Auto Industry Development Programme (AIDP) here today organized by Engineering Development Board.
Jahangir Tareen said the government wants to encourage growth, promote domestic competition, enhance competitiveness and stimulate innovation through the Programme.
He expressed the hope that the policy framework of the government will double the contribution of Auto Industry to GDP from 5 to 6 percent in 2011-12 from present 28%, with turnover of Rs.600 billion and export to
US $ 350 million and US $ 300 million for CBUs Paying tributes to vendoring sector, he described it as vibrant major job provider and a potential necessary for the engineering skills know how and integration of technologies in other sectors.
He said the government will support the auto industry with skill development Program technology up-gradation, auto cluster and R&D. Referring to up-gradation of Engineering Development Board to Authority, he said that the Ministry was working on its details and exercise will be completed by end January.
This will give more independence and powers to the organizations for serving the auto industry. However, he expressed regrets on non-introduction of new products by the industry in last few years.
The adventages of the policies intiated by President Musharraf and Prime Minister Shaukat Aziz have benefitted the auto industry, he added.
Earlier Chief Executive Officer, Engineering Development Board Imtiaz Rastgar, in welcome address said the Program has been developed as the higher protection to the localized parts under the Tariff Base System (TBS) would not be for an indefinite period due to government’s external obligations and risk of potential un-competitiveness.
The program provides a complete road map to Auto Industry with clearly spelled targets, he said added, a pre-announced five year tariff plan for both CBUs and components will help the industry to make long term investment and production decisions.
It will also make business environment transparent and predictable he said and hoped that the incentives given in the Program will give a direction to the industry to become competitive innovative and sustainable.