Federal Minister for Industries, Production and Special Initiatives, Jahangir Khan Tareen, said that the menace of smuggling of old and used auto parts would be addressed through predominantly fiscal measures as smuggling adversely affects government's revenue, exports and industry.
Earlier, two important stakeholders of this sector, Pakistan Association of Automotive Parts and Accessories Manufacturers, and Old and Used Auto Parts Association, presented their points of view on the issue.
According to Pakistan Association of Automotive Parts and Accessories Manufacturers, the ban should continue as it is necessary for protection of local auto parts industry. They suggested that administrative measures could be taken by CBR to address smuggling of old and used auto parts.
On the other hand, Old and Used Auto parts Association said that the ban should be removed as it would not only generate more revenue but would also affect exports positively. Moreover, removal of ban would also help in developing local auto parts industry on sound footing in the long run.
After hearing all arguments and opinions, the Minister along with CBR Chairman Abdullah Yousf decided to form a committee comprising members from all stakeholders and headed by CBR Member (Custom). The committee would give detailed recommendations soon in order to cope with the menace of smuggling of old and used auto parts--through predominantly fiscal measures.
The meeting was also attended by officials of ministries of industries, trade and commerce and CBR.