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ISLAMABAD – The Economic Coordination Committee (ECC) of the Cabinet has approved Auto Industry Development and Export Policy (AIDEP) 2021-26 with the objectives of affordability of small cars to Pakistani customers and ensuring better quality and safety features in cars.
After detailed discussion, the ECC has approved the summary tabled by Ministry of Industry & Production on Auto Industry Development and Export Policy (AIDEP) 2021-26, with the directions that export targets given in the Policy may be reviewed every year and updated accordingly and proposed tariff structure to be presented separately to the ECC.
The government has finalized the policy with the objectives including affordability of small cars to Pakistani customers, ensuring better quality and safety features in cars, creating further competition among car manufacturers and localization of auto parts and their exports. Other objectives of the policy are formulation of legal framework for auto sector, steps for market growth/ maximizing production of vehicles in the country and removal of anomalies in previous policy and promotion of new technologies.
Government has tried to support the auto industry and the investors through different fiscal and administrative measures. Intention is to brace the local auto industry through localization of parts and equipment. In order to meet the objective, government intends to review the concessions and fiscal regime on annual basis in consultation with the stakeholders.
Omar Ayub Khan, Federal Minister for Economic Affairs, chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet in Islamabad. The ECC after deliberation approved the summary presented by Ministry of Energy on Retargeting of Power Sector Subsidies – Phase –II, that included removal of one slab benefit (incremental block tariff) and incorporation of revised subsidy and inter-distribution companies tariff rationalization/cross subsidies. The Committee also recommended the summary tabled by Finance Division for enhancement of Ways and Means Limit of Khyber Pakhtunkhwa Government from Rs. 27.0 billion to Rs. 31.3 billion due to the impact of wage bill of erstwhile FATA.
The ECC discussed and approved the summary presented by Ministry of Industries & Production for endorsement on decision of the Committee constituted by the ECC of the Cabinet on scrapping of the tenders floated by TCP in respect of import of sugar. On the recommendation of Technical Advisory Sub-Committee, ECC also approved the summary tabled by Ministry of Industries & Production on revised Gas supply priority order to fertilizer sector. System gas supplies will be ensured to these plants during the current Rabi Session 2021-22 ensuring immediate availability of urea fertilizer and saving of foreign exchange in case of import of urea from abroad.
The ECC after deliberation approved the summary presented by Ministry of Commerce on Textile and Apparel Policy 2020-25 with directions to incorporate inputs of FBR and Finance Division and meet the observations of Power Division.
On the recommendations of Technical Advisory Sub-Committee, ECC also approved the Technical Supplementary Grants for amount Rs 2,650.968 Million in favour of Ministry of Housing & Works for execution of development schemes in the province of Sindh and Balochistan under SAP. The ECC has also approved Supplementary Grant/Technical Supplementary Grant in favour of Ministry of Energy for payment of first instalment (40%) to IPPS of 2002 under payment mechanism. It has also approved Supplementary Grant to Ministry of Information & Broadcasting amounting to Rs. 2 billion for launching comprehensive media campaign on government initiatives, programmes and projects.
The ECC, after detailed discussion, deferred a summary tabled by Ministry of National Food Security & Research for notification of minimum indicative price of Tobacco Crop 2022 with the directions that a committee may be formed to address the observations of stakeholders and present the proposal in the next meeting after detail revision.
Earlier, Adviser to the Prime Minister on Finance & Revenue Shaukat Tarin presided over the meeting of Technical Advisory Sub-Committee. The TASC reviewed the summaries in details and presented its recommendations to the ECC for its consideration. The ECC meeting was attended by Adviser to the PM on Finance & Revenue Shaukat Tarin, Minister for Industries & Production Makhdum Khusro Bakhtyar, Minister for Energy Hammad Azhar, Minister for Railways Muhammad Azam Khan Swati, Minister for Interior Sheikh Rashid Ahmed, Federal Minister for National Food Security & Research Syed Fakhar Imam, Adviser to the PM on Commerce & Investment Abdul Razak Dawood, Minister of State for Information & Broadcasting Farrukh Habib, governor SBP, respective federal secretaries and other senior govt officers.
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