Prime Minister Mir Zafarullah Khan Jamali chaired the meeting of the Task Force on Automobile Sector that presented its recommendations here at the Prime Minister's Secretariat.
He directed manufacture of spare parts of automobiles locally to provide more job opportunities and boost the industrial sector.
The Task Force, constituted on July 19 last year, presented its recommendations for the automobile sector for reduction in prices of cars, quick delivery and WTO tariff issues and extension of deletion programmes.
The Prime Minister was informed that increase in production, reduction in tariff rates, review of deletion policy was the conclusion drawn by the Task Force.
The Task Force suggested permission to book one car per National Identity Card and enlarging the dealer base. Prior to delivery, it will be mandatory to have the registration of car done in the name of the person who originally booked the car.
The Prime Minister said better performance of the industrial sector would strengthen economy, provide job opportunities and improve socio-economic conditions.
Government's first priority will be given to solve the genuine problems of the industrialists and devise better strategies to face the challenges of WTO, he added.
Jamali stressed the need to bring new entrepreneurs in the automobile industry, by providing them incentives. He renewed the commitment of the government to build Pakistan's image as a producer of quality products according to international standards.
He reiterated firm resolve of government to curb speculation by the investors on account of rising demand consequent to availability of liquidity at low interest rates.
Prime Minister Jamali was informed that automobile industry (assemblers and vendors) saved $ 692 million in import substitution and $ 295 in foreign exchange during 2002-03 and generated revenue of Rs 14.3 billion for the national exchequer in the same period.
The present direct employment of the automotive industry in 2003 was 115,600, while total employment after two years (2005) is estimated to reach 228,600.
Through the continuity of the policies, Rs 60 billion investment is expected in this sector by 2005. Exports by our vendor industry were $ 25 million in 2002-03, while $ 31 million are projected for 2003-04.
The meeting was informed that there was 71 percent increase in production of automobiles and it increased to 43,706 cars during the period July-December 2003-04 from 25,531 cars during the same period in 2002-03.
Increased, profits were diverted to investment for enhancing production capacity.
The Task Force observed that indigenisation trend of car industry was on the rise. The indigenisation percentage in 2003 was 70.25, 61 and 56 percent for up to 800cc, 1000cc and 1200cc cars respectively.
Minister for Industries and Production Liaqat Ali Khan Jatoi made the presentation.
Secretary Industries and Production Javed Ashraf Hussain and members of the Task Force attended the meeting. The report of the Task Force will be presented to the Cabinet shortly.