Islamabad: The Auto Industry Development and Export Committee (AIDEC) convened its 5th meeting on August 20, 2024, focusing on bolstering Pakistan’s auto sector through strategic policy adjustments and export enhancements. Chaired by Federal Minister for Industries and Production, Rana Tanveer Hussain, the session drew key stakeholders from across the industry to address current challenges and future directions.
According to Press Information Department, the meeting brought together representatives from various governmental departments and leading figures in the automotive sector, including CEOs and chairpersons from major companies such as Ghandhara Industries, Master Motors, and Indus Motor Company. Key topics of discussion included the implementation of the Auto Industry Development and Export Plan (AIDEP) 2021-26, localization of auto parts, and regulatory changes aimed at improving export capabilities.
Participants reviewed progress on export targets and debated the impact of existing duty and tax structures on the competitiveness of Pakistani vehicles in international markets. The industry leaders emphasized the urgent need for Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) to enhance market access. Additionally, concerns were raised about the economic impact of discontinuing parts once localized, prompting a recommendation for shared use of localized parts among manufacturers to mitigate losses.
The committee also discussed the implementation of international regulations and the phase-out of import concessions, which are critical to aligning Pakistan’s automotive products with global standards. Another significant point was the proposal to ban the import of used auto parts to protect local manufacturers.
Minister Hussain concluded the meeting with directives to form a subcommittee that will provide quarterly reviews and address regulatory issues affecting exports. He also called for the development of an Auto Parts Manufacturing Policy that aligns with broader industrial strategies, aiming to position locally manufactured vehicles as competitive options in the global market.
The decisions and discussions from this meeting underscore a strategic shift towards enhancing the structure and output of Pakistan’s auto industry, with a strong focus on quality, pricing, and international market penetration.