The Automotive Industry Development and Export Plan (AIDEP) 2021-26 has promised several positive developments for the Pakistani car industry, including the formation of the Auto Sector Monitoring Committee (ASMC). The committee will oversee the auto sector under the chairmanship of the Federal Secretary of the Ministry of Industries and Production.
The government has also provided the committee with the autonomy to allow or cancel incentives provided to automakers under the AIDEP 2021-26. The clause related to ASMC’s authorities states that the committee holds the right to revoke incentives being offered to an automaker if it fails to comply with the provisions under the AIDEP 2021-26.
Representative from different departments including Ministry of Commerce, Ministry of Science and Technology, State Bank (SBP), Federal Board of Revenue (FBR), Engineering Development Board (EDB), Competition Commission of Pakistan (CCP), Pakistan Automotive Manufacturers Association of Pakistan (PAMA) Pakistan and the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) would be included in the ASMC.
Committee’s Other Powers
The government has also formulated Terms of References (ToRs) of the ASMC, as per which, the committee will address the consumer’s grievances including the ongoing own-money issue, delayed deliveries, parts localization, quality assurance, and other pertinent matters.
The committee will also ensure the implementation of the World Forum for Harmonization of Vehicle Regulations. Under this clause, the ASMC will manage multilateral agreements signed in 1958, 1997, and 1998 concerning the technical prescriptions for the construction, approval of wheeled vehicles, as well as ensuring company operations within the framework of these agreements.
Officials also say that another committee would be formed to deal with the technical matters of the auto sector with the name of Auto Industry Development and Export Committee (AIDEC). This will be a recommendatory committee and will work under the chairmanship of the CEO of the Engineering Development Board.
The AIDEP 2021-26 lays a particular emphasis on the complete indigenization of vehicle production in Pakistan in order to ensure the sustainability of the auto industry of Pakistan. The ASMC is also asked to make certain that the localization targets are met in a timely and effective manner.
