Table of contents list of acronyms


AUTO INDUSTRY DEVELOPMENT PROGRAMME (AIDP)



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PR-14-13
3.5. AUTO INDUSTRY DEVELOPMENT PROGRAMME (AIDP)
In 2005 the EDB initiated preparations for the future development of the automotive sector. After a lengthy series of stakeholder discussions, the Auto Industry Development
Programme was announced in January 2008. Its objectives were to ensure sustained growth, increase competitiveness, absorb and diffuse technology, develop the human resources needed and comply with standards, safety and environmental regulations. Within the overall rubric of the sector’s development it contained the following sub-programmes: Auto Industry Investment Policy (AIIP)
 Reduced the threshold of investment required by new entrants
= However the definition excluded all those who had attempted to enter or had exited, e.g., FIAT, General Motors, Mack Trucks. Chevrolet’s Joy thus lost the opportunity
 The one-window operation foreseen in the policy does not exist Productive Asset Investment Incentive (PAII)
 Designed as a customs duty credit on the value of investment in new productive assets, e.g., dies, tools, jigs to be claimed against certified investment. The Ministry of Finance did not agree to the proposal. Five Year Tariff Plan
 Designed and implemented in the first year. Subsequent reflections in the budgets did not materialise. The Plan is attached as Appendix 3.1 Technology Acquisition Support Scheme (TASS)
 Was designed as a matching grant to be funded from the Science and Technology
Ministry’s pool of RD funds. However, since such funds were never allocated the Scheme remained nonoperational. Auto Cluster Development


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 The Auto Parts Cluster in Lahore developed by SMEDA proved to be a success. The Trailer/Bus Body Park is being proposed for Faisalabad. No other plans have come to light. Human Resource Development (HRD)
 Will be based on existing public sector resources through the TEVTAs and the Engineering Universities to develop the requisite skills. An overall assessment would tend to suggest that the programme was well-conceived, but was under-resourced and the political will to take it off the ground withered away with the change in government. Even though the AIDP 2008 achieved only partial success, the MOIP and
EDB are in the throes of preparing its successor.

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