Car Manufacturing In Pakistan Essay

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SECTION - I
CAR MANUFACTURING IN PAKISTAN
Car manufacturing is a high tech process and experience of a certain company/country in car manufacturing is considered as an important factor to gauge reliability. Similarly, regulatory regime or development of policies over the time also plays an important role in overall development of automotive industry.
1.1 HISTORICAL PERSPECTIVE
Car manufacturing in Pakistan started by assembly of Chrysler’s Dodge cars in 1956 followed by introduction of British Ford and Vauxhall passenger cars in 1960s. However, proper car manufacturing started in 1983 when PSMCL was established by Pakistan Automobile Corporation (PACO) through Joint Venture (JV) with Suzuki Japan. In 1992, Japanese bought PSMCL and built …show more content…

The auto parts manufacturing is regulated by SRO 655(1)2006 wherein APMs are allowed to import their inputs at concessionary rate. Both SROs have certain prerequisites of having manufacturing facilities e.g. engine assembly line, paint shop, welding infrastructure, main assembly line, store etc. are prerequisites in case of grant of manufacturing certificate to OEMs by EDB for car manufacturing. SRO 656(1)2006 authorizes import of CKD at concessionary duty (30 percent for cars as per ADP) and localized parts at additional duty (45 percent) applicable from Budget for FY 2016-17. SRO 655(1)2006 allows import of raw-materials, sub-components & components and sub-assemblies at 1percent, 10 percent and 20 percent respectively for manufacturing of parts/ components/ sub-assemblies by vendors or OEMs through their in-house facilities. The contract manufacturing of vehicles on existing plant is also allowed. SRO 693(1)2006 is used as reference, which contains complete list of parts and components which have been localized, and thereby attract additional custom duty if imported by

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