Decision to increase car production in the country.

The government has decided to boost the country's vehicle production.Automotive industry news

Decision to increase car production in the country.
Car manufacturing in Pakistan (Time Square Image 008)

Automotive industry news

Time Square News (Islamabad): The federal government has decided to increase the production of vehicles within the country, saying that increasing vehicle production will create jobs and save foreign exchange.

If the vehicle is not registered in the name of the buyer, there will be a fine of Rs. 50,000 will be imposed on small vehicles. This was stated by Federal Minister Khusro Bakhtiar in an interview.

"We want to grow the manufacturing sector in the auto industry within the country. There have been 42 models of vehicles in the government of "Pakistan Tehreek-e-Insaf". We have decided to increase the production of vehicles within the country instead of manufactured vehicles," he said.

Last year, 211,000 vehicles were built locally, and under the government-introduced Roshan "Apni Car Scheme", 161,000 vehicles have been built in the last five months.

Khusro Bakhtiar said that for the first time, the current government has reduced the duty to facilitate the buyer of a vehicle which increased the demand for vehicles but there is a clear difference in the demand and supply in the market. 

"The biggest challenge in sustainable economic growth in Pakistan is the current account deficit. We have looked closely at the auto industry. Last year, the import bill was 2.7 billion dollars. If we order a built-in vehicle, it is estimated to be 4.1 billion dollars. We have created a mechanism within the auto policy under which these numbers will be reviewed every six months.

The Federal Minister said that the SME policy was not made in one day, it was prepared after long consultation with all the stakeholders, consultants were also hired, reservations came to the ECC which were removed then the Cabinet Approved it. Attempts were made to introduce the SME policy in 2007, but it was implemented only on a piece of paper.

"There are over 5 million SME sectors within our country which have auto part manufacturing, beauty parlors, garments, and three million commercial connections. Under this policy people will get loans of up to Rs. 10 million for business," he said. And from 40 to 60% risk will be borne by the government. So far, nine commercial banks have bid on it. The government is trying to bring microfinance banks into it as well.