Further increase in investment is expected under the auto development policy
One billion dollars has been invested in the car industry in Pakistan. Under the new five-year auto development policy, further investment is expected.
Under the policy, locally manufactured auto parts will also be exported and the provision of affordable small cars to Pakistani consumers has been made a priority.
In addition, with a multi-billion dollar investment, about a dozen new car companies have sprung up in the country. More investment will come in the future.
According to the official document, production of 9 car companies has started, three to four more companies will start operations soon, including Chinese, European, Malaysian and Korean companies.
Thanks to the new companies, production of cars, SUVs, light and commercial vehicles increased in Pakistan. In the current financial year, vehicle production increased by 75% while sales increased by more than 70%.
The Ministry of Industry and Production document states that the establishment of new car companies has created a competitive trend in car manufacturers, ensuring better quality and safety features is part of the new auto policy. A legal framework for the auto sector will also be prepared and incentives for the auto industry will be announced in the next budget in consultation with stakeholders.
The ECC meeting could not reach a final decision on the new five-year auto policy, the summary was postponed for further consultation on the policy.