Islamabad: The Engineering Development Board (EDB) is all set to present the auto policy for new entrants before the Economic Coordination Committee (ECC) of the Cabinet for final approval, sources said on Wednesday.
“The EDB is giving final touches to the new entrant auto policy, which is expected to be submitted before the ECC shortly,” the sources in the board said.
The new policy envisages investor-friendly measures to attract leading auto assemblers and manufacturers into the country, they said, adding that the new manufacturers would be given an incentivised progressive localisation regime.
However, the government will seek some guarantees from the new entrants so that they do not wind up their business whenever they want and leave the country, the sources added.
A new entrant, under the Auto Industry Development Programme, has been defined as a potential assembler/manufacturer of global repute, which never had an assembly or manufacturing facility in Pakistan and intends to assemble or manufacture a vehicle either on its own or through an agreement with a local company.
Under the existing AIDP, the new entrant should have 500,000 units annual production in the countries other than Pakistan and a significant global presence by way of manufacturing at least 25,000 units of trucks and buses separately, 40,000 light commercial vehicles (LCVs) and at least 50,000 units in the case of agriculture tractors annually in the countries other than Pakistan.
The new entrant will also have a plan for the progressive manufacturing of vehicles and a serious and demonstrable intention to develop parts locally, either in-house or through the vendors to achieve competitiveness. Registration is required to produce road worthy vehicles that comply with the environment standards with the EDB and the Ministry of Industries and Production for entitlement of benefits under the scheme, the sources said. The new entrants will have to submit a proof of land acquisition in the case of green held project or an agreement with the owner, in the case of existing assembly facilities.