Cars Under 1,000 CC Aren’t Fuel Efficient in Pakistan: Ministry of Industries

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Cars Under 1,000 CC Aren’t Fuel Efficient in Pakistan: Ministry of Industries

As compared to other countries, the smaller cars of less than 1000 cc in Pakistan don’t save fuel due to the use of old technology in these cars. It was recently admitted by the Ministry of Industries & Production.

The ministry told that fuel efficiency and standard of higher cc vehicles in Pakistan are same as compared to such cars in other countries but the situation is not same for smaller cars of less than 1000 cc. These cars have old-age technology which makes them low in fuel efficiency.

The mechanical of these cars under 1000 cc is still same since past many years while the companies only upgrades few parts of new models of these cars.

Following automobile companies are manufacturing vehicles in Pakistan currently.

Following two categories are now allowed in Pakistan under the new auto policy and their incentives are also given below.

Category-A

It is called as Greenfield Investment which include installation of such a new automotive manufacturing and assembly facility by an investor which the company hasn’t manufactured earlier in the country.

Investment Incentives

  • Setting up of manufacturing facility and assembly with duty-free import of machinery and plant for one time.
  • After ground breaking of project, 50% of current duty for import of 100 vehicles of the same type in CBU.
  • For manufacturing of LCVs and cars, the reduced custom duty of 25% on localized parts and 10% on non-localized parts for 5 years.
  • For a period of three years, current custom duty is applicable for import of both localized and non-localized parts for three years.

Category-B

The revival of existing manufacturing is termed as Brownfield Investment which are not operational and produced in Pakistan since 1st July 2013 either the revival is made by a new investor or its original owner or if there is a joint venture of two or more companies.

Investment Incentives

  • For manufacturing of cars and LCVs, 25% custom duty for localized parts and 10% duty for non-localized parts for a period of three years.

For three years, applicability of current custom duty for import of localized and non-localized parts for manufacturing of prime movers, trucks and buses.

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