Overview
The automobile sector today operates within the rubric of several policies, frameworks and regulations: the Industrial Policy 2011; the Trade Policy Framework 2012-15; the Finance Acts which modify the fiscal and tariff regime backed by the Statutory Regulatory Orders (SROs) and the Customs General Orders (CGOs); the Auto Industry Development Programme (AIDP) 2008 12; the Tariff Based Scheme (TBS); Pakistan Standards; and the National Environmental Quality Standards (NEQS).
Since 1987, policies were devised to place the industry in Pakistan on the path of ‘indigenisation’. It was believed that once complete indigenisation is achieved, prices will come down automatically. To achieve indigenisation, the import of vehicles remained banned till 2000 under the trade regime. However, import of used and reconditioned vehicles was liberalised under gift, personal baggage schemes and transfer of residence (TR). TR scheme allowed the import of cars without any age limit on them till 2006 when the import of cars under the scheme was first restricted to three and subsequently to five years, making the policy more restrictive.
