Auto Industry Development Policy (AIDP) 2016-2021 has successfully achieved all of its targets and the federal government must not offer any more incentives to the auto industry, CEO Lucky Motor Corporation (LMC), Asif Rizvi, has remarked.
While speaking with a local news outlet, Rizvi said that the incentives under the AIDP 2016-2021 have not only helped in ending the stagnation in the local car market but have also brought huge investment in the Pakistani auto sector.
He added that the monopoly of few companies in the auto industry has finished, new entrants and investors can easily enter the auto market, consumers have a wide variety of choices of vehicles, and a lot of valuable time has been saved by increasing the installed capacity of the industry thanks to the AIDP 2016-2021.
Rizvi suggested that the federal government should now allow the auto sector to stabilize by not offering any further incentives rather than destabilizing it by providing additional incentives in the AIDP 2021-2026.
He argued that extending further incentives to the existing or new companies would be an injustice to the companies that invested massively in the auto industry amid a difficult economic situation.
Besides, Rizvi described the lack of infrastructure and interrupted supply of electricity, gas, and water to the manufacturing plants as some of the major issues currently being faced by the auto industry.
He said that the policies of the federal government, especially a sharp decrease in the interest rate by the State Bank of Pakistan (SBP), have allowed the economy to stabilize and recover.
When asked what it would take to bring down the car prices in the country, Rizvi recommended that the federal government must abolish the long-standing exorbitant customs and federal excise duties on cars and auto parts to drive down the prices of the vehicles.