Pakistani government has introduced a five-year Auto Industry Development Plan (AIDP) aiming to increase local production of cars from 200,000 in fiscal year 2005-06 to 500,000 in 2011, a cabinet minister said Wednesday.

The development plan will help make local auto industry more competitive, create capacity for local design and innovation, domestic competition, human resource development and auto cluster development, said Jahangir Khan Tareen, Pakistani federal minister for Industries, Production and Special Initiatives, according to state-run Associated Press of Pakistan.

He expressed these views during a meeting with top leaders of the major Car Assemblers in Pakistan, including Toyota Indus Motor, Suzuki and Honda, according to the APP report.

Under the AIDP, the used car import policy will be regulated so as not to impede the growth of local industry while protecting the consumer interests, the minister said.

It was agreed during the meeting that indigenization of the local auto industry will be done as required under the AIDP, according to the report, with the minister saying that the government is keen to bring indigenization in the local auto industry.

The Assemblers were reportedly in agreement with the Ministry on almost all the points of the AIDP draft.

The automobile industry in Pakistan has witnessed tremendous growth during the last few years. The car production rose to almost 200,000 units by end 2005-06 from about 40,000 in the year 2002-03.

Source: Xinhua