Auto Policy 2016-2021

SALIENT POINTS OF PAKISTAN’S NEW AUTOMOTIVE DEVELOPMENT POLICY 2016-21

• Five Years Automotive Development Policy for the period 2016-21
• Projects have been categorized as:
  • Greenfield Investment – Category A and:
  • Brown Field Investment – Category B
• Ninety-nine pages policy available at:

http://boi.gov.pk/userfiles1/file/AutoPolicy/AP.pdf

Category A – Green Field Investment means

• Installation of new and independent automotive assembly and manufacturing facilities by an investor
• Production of vehicles of a make not already manufactured or assembled in Pakistan.

Incentives

• One time duty free import of Plant & Machinery for setting up assembly and/or manufacturing facility.
• Import of 100 vehicles of same variant at 50% of prevailing duty for test marketing, after ground breaking.
• Concessional rate of duty @10% for non-localized parts and @25% for localized parts on import for manufacturing of cars and LCV (light commercial Vehicles) for a period of five years.
• Import of all parts for manufacturing of trucks. Buses and prime movers at prevailing rate for non-localized parts for a period of three years.
• For motor cycles existing government policy shall continue.

Category B – Brown Field Investment means

• Revival of an existing assemble and/or manufacturing facility, non-operational or closed on or before July 01, 2013.
• Revival under taken by the Foreign Principal independently or under joint venture by original owners or new investors.

Incentives

• Concessional rate of Duty @10% for non-localized parts and @25% for localized parts, on import for manufacturing of cars and LCV (light Commercial Vehicles) for a period of three years, and
• Import of all parts (localized or non-localized) for manufacturing of trucks, busses and prime movers at prevailing rate customs duty for non-localized parts for a period of three years.

AUTOMOTIVE DEVELOPMENT POLICY 2016-2021

1. One off duty free import of plants and machinery for setting up assembly and manufacturing facility;
2. Permitted import of 100 vehicles of same variants in the form of completely build units at 50% of the prevailing duty for test marketing after the groundbreaking of the project;

• Reduced 10% custom duty on non-localized parts for five years against the prevailing 32.5% duty;

1. Localized parts can be imported by the new automobile investors at 25% duty compared to the current 50% for the next five years;
2. Board of Investment will provide a single point of contact for all new investors.