Finally long awaited news is here.

Pakistan government has been debating on an auto policy for the last five years or so, costing the country and its citizens billions so far. However, the policy has been finally approved after a long hiatus. The new policy could attract new car manufacturers from Europe or China thanks to some tax incentives for setting up manufacturing units in Pakistan.

The Ministry of Finance announced that the Economic Coordination Committee (ECC) has finally agreed to an Automotive policy for the next five years. The government, however, decided not to change its policy regarding car imports despite the Federal Board of Revenue?s (FBR) recommendation to allow imports of up to five-year-old cars compared to the current limit of three-year-old cars. FBR has also proposed to open imports for commercial purposes.

Miftah Ismail, Chairman of the Board of Investment, said that ?The existing three car manufacturers will not be entitled to the benefits that are being offered to the new investors.? He added that the policy was aimed at enhancing consumer welfare and boosting competition in the country besides attracting new players. Ismail said that greater localisation of auto parts