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:
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.
- 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.
- 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
- One off duty free import of plants and machinery for setting up assembly and manufacturing facility;
- 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;
- Localized parts can be imported by the new automobile investors at 25% duty compared to the current 50% for the next five years;
- Board of Investment will provide a single point of contact for all new investors.