The Ministry of Industries and Production (MoI&P) has failed to defend the proposed new auto policy effectively during consultations with the International Monetary Fund (IMF).
Talks with the IMF remain inconclusive
The sources divulged on Tuesday that the policy board has not managed to conclude its discussions with the IMF successfully. As a result, the government has agreed to extend the current one-year auto policy for another year because of the delay in introducing the new policy.
Several targets remain unmet
Sources in the Ministry of Industries and Production said several targets under the previous auto policy remained unmet. Auto manufacturers failed to achieve export targets, while a number of locally produced vehicles did not meet international standards.
Prime Minister Shehbaz Sharif had directed the ministry to prepare an investment-friendly auto policy. The proposed policy aimed to create new employment opportunities, increase industrial activity and make international vehicle safety standards compulsory for locally manufactured vehicles.
Under the proposed policy, the companies that fail to meet global safety requirements would face penalties. It also proposed the implementation of 62 international safety standards for both imported and locally manufactured vehicles.
FBR, other ministeries consulted on new auto policy
Consultations on the new auto policy are continuing with the Federal Board of Revenue (FBR), the Ministry of Commerce, the Ministry of Law and Justice, and the Ministry of Science and Technology.
It is pertinent to note that PM Shehbaz had instructed the authorities to make the new auto policy more attractive for investors.
