Car Prices Reduced in new Pakistan Auto Policy 2021, here are full details of Policy

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Pakistan Auto Development and Export Policy 2021

Government of Pakistan have the announced the new auto and export policy 2021. There are few main purposes of this auto policy which include, brining the ever rising car prices down for end consumer, encouraging the auto makers to produce new cars in Pakistan instead of importing and selling from the abroad and finally, encouraging the auto manufacturers to not only meet the demand of local auto market but also encourage them to make extra vehicles and export them.

The new Pakistani auto policy of 2021 is appropriately named the “Pakistan Auto Development and Export Policy 2021”, it is overall 2nd auto policy of the country. First one was introduced in 2016 by PML-N led government and that too had very positive impact on local auto market and resulted in lots of new auto makers entering or reentering in Pakistani auto market. These include but are not limited to KIA, Hyundai, Chandan, Proton and many more.

Price Reductions

But coming back to Pakistan’s auto policy 2021, following are the benefits which were given in the auto policy.

  • 660 to 850 CC: For vehicles with engines from 660 to 850 CC, the Sales Tax reduced from 17% to 12.5% , additionally the FED (Federal Excise Duty) which was 2.5% is not 0%, its just removed fully. Additional Custom Duty (ACD) which was 7% is not applied to this category anymore and is now 0%
  • 851 to 1000 CC: For new category of vehicles with engine capacity up to 1000CC, the sales tax is similarly reduced from 17% to 12.5%, new FED is again 0% for this category as well. ACD, which was being charged 7% is now fully waived off to 0%.
  • Above 1001 CC: For this category no tax reduction given in sales tax. The FED is decreased by 2.5% and ACD is reduced to 2% from the older 7% which was being charged from customers.
  • Import duty reduced from 25% to just 10% on electric vehicles for Completely Built Units (CBU). Same is true for the hybrid vehicles which reduce the fuel consumption at least 30%. This Import duty is now 0% for CKD (Complete Knocked Off) Electric Vehicle Kits an which are later assembled inside the country.

Discouraging OON / Premium on top of Price

The auto policy also puts some good attention to the problem of premium earning on the vehicles which is result of supply demand gap. This is called “oon” in local language. So what investors do is, they register vehicles in advance and once they receive it, as no other option to buy car instantly is available due to supply/demand gap, they sell it instantly by charging a premium amount on car price. Some auto manufacturers and specially the show room owners also adopt and promote this practice. To discourage this all following initiatives are taken by government in this regard,

  • Car/Vehicle must only be registered in the name of person, who registered it in the first place. Otherwise, if the registrant is different he will have to pay additional fine of Rs. 50,000 to 200,000
  • Auto Manufacturers will deliver vehicles within 60 days of vehicles registration, otherwise, they will pay KIBOR + 3% interest rate on registration amount to registrant in case of delay. However, most likely this applies only in case when the vehicle was registered with full upfront payment to manufacturer.
  • Registrant will be able to see where in manufacturing stage their car is currently, via an online system to be introduced by each manufacturer.
  • If these steps still don’t work, additional steps will be taken and fine will be increased to stop the malpractice of charging premium for instant availability of vehicle.

Ensuring Car Quality and Safety Features

Auto policy also focuses on car quality and the safety features provided. For that auto manufacturers will have to at least meet the WP-29 world standard to provide enough safety features and a meet a minimum quality threshold.

Benefits for First Time Car Buyers

For people who are purchasing their first car, a car leasing scheme will also be introduced. This will have lower first payment and lower than current rates of interest. So that the people who are using the motor bikes can more easily switch to a car.

More to Come

According to Khusro Bakhtayar’s press conference on same topic, he mentioned that auto policy have much more benefits and sections which are subject to cabinet approval and will be announced in next month, which is first week of August 2021. Everything which is mentioned above is final and approved, these will details affective immediately infect right from 1st July, 2021. More expected benefits include the reduction of Customs / Import duty of JDM (Japanese Domestic Model) Cars. But import benefits will be given to the level so they do not jeopardize or affect the sales of local industry. Also, benefits to be announced include proper announcement of low interest car leasing schemes for people buying their first car and much more to be expected.

Conclusion

Finally, this auto policy is a very good step in right direction, this will boost Pakistan Auto market and will benefit the end consumers a ton. This single step addresses many concerns of Pakistan Automotive consumers which include car pricing, extra taxes, vehicle quality and malpractice of “oon” or premium charging on already hiked prices of Cars. It is also good that Pakistan Government is now determined to keep checks on auto manufacturers so that they keep the quality of vehicles up to the par and provide at least basic safety features.

TLP Protests Exposed Great Deal of Indiscipline in Punjab Police

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During the recent Tehreek e Labaik (TLP) Protests in Pakistan, police was given difficult task of controlling the difficult mob, which definitely was a difficult task and on many places they were able to accomplish the task. Even the police force personals did lost their lives. There is no denying to all of these but lets get to the point now, on lots places the good old Gullu Butt factor was seen in the police. Some actions of Punjab Police depicted that they still need some discipline and training about how to deal with the citizens.

For example, here an incident worth mentioning, a TLP worker was kind of arrested by a police man, he was fully co-operating with him, he had him and it looked like police man was walking down with the prisoner towards a vehicle etc, another police man comes and unnecessarily starts beating the man. The man who have already have given up and is fully co-operating. He keeps beating him with sticks, even after the men fells down but the sticks keep coming. Luckily some other police men around interfere and stop him, otherwise it was looking too bad for him. Yes I am talking about the incident in following video tweet.

Than there was another incident where a bullet proof police vehicle goes towards protestors in full speed, putting their lives in danger. In background a voice says, two people are hit and gone under the vehicle. And you can clearly see, it happened, people can be seen on ground behind vehicle, this is not the way the state institutions work. Even if mob was out of control, they are citizens of this same country, so should have been dealt accordingly. Further you can see in the following video tweet, by the way. Police should deal with mob or any other situation professionally.

Another video from this clash was this ambulance video, where injured are not being spared inside the ambulance, they are being pulled out of ambulance and being beaten further with sticks.

Than there were other videos where the singled out TLP supporters which were in custody of Police, they were hand cuffed and were being beaten. These videos I can embed here but I don’t feel like doing it, you can search by hashtags of one of these above videos and you can find them. The point here is, it is not the job of state institutions like police to start taking revenge at their own, if they have picked up someone, they must be delivered to courts for due action. No society allows such behavior and violation of human rights which Punjab police is used to.

Also it is responsibility of Police departments that such incidents must not go unnoticed, due action must be taken against the individuals involved and details must be made public. As, I fully understand no institution allows this, but these are acts of individuals which are being ignored.

Finally, to make it clear that this article was not written due to some political motivations, I did voted PTI in last elections and I feel they have not done enough to bring the reforms in our police. Still, I have not seen any minister mentioning anything against these incidents. On other hand I have no affiliation of any kind with TLP but on same time I am unable to take these human rights violations lightly and let them pass by. Finally, yes TLP workers did similar stuff where they caught a singled out police man but the point here is, Police is an institution which have to go be rules and certain discipline and cannot be judged on standards of a mob.

Nothing wrong with this By The Way, just Police Holding Back the Protestors!

Cancel Exams Save Students Trends all Over Pakistani Social Media

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#1 Trend is From Students

As the daily number of new COVID 19 Cases and daily related deaths are on peak right now in Pakistan, they are in fact all time high. Despite this Govt have opened the Schools/Colleges for students from 9th grade up to 12th and is hell bent on taking the board exams.

Students on the other hand are protesting against it through different avenues they have, one of them being the social media. For Example, the hashtag #CancelExamsSaveStudents is trending number one on twitter in Pakistan countrywide with about nearly 40,000 tweets on this hash tag and two other related hashtags #CancelExams2021 and #CancelExamsPakistan2021 seeing bulk tweets as well.

Lots of people are on side of students in this, as according to them it is not only risk for students but also will be risk for education stuff who will be conducting the operations of exams. So government should for now either delay exams or promote like last year, whichever is suitable, but it is not the time to call students back to school in such a bad situation.

Some have taken another unique route to express their feelings about the students being pushed towards the exams and COVID exposure in there difficult days. Yes I am referring to this following video tweet.

And some have resorted to mems like in the following tweet and more to express their feeling towards the insensitivity of government in these testing times.

Also some of the tweets suggest the students have also filed a case in court and an awaited judgment which is suppose to come today later on is ray of hope and is expected to give some relief to students. All the efforts of communicating the concerns to ministry have been useless so far. Another viral cartoon about the whole situation looked like following.

Have no stake in the whole situation in any way possible, here is what my opinion is, on this. Though the continued education is of utmost importance for career of students and for the future of country as well, but currently seeing the Corona Virus Infection rates, active cases, daily new cases and daily new deaths, govt should show some flexibility here. As per all the authentic sources, all of these above mentioned stats are on their all time high in Pakistan. So it is better that government takes balanced approach and if canceling exams is not possible, they must at least delay them for now until situation gets better.

Govt and TLP Dialog Successful, Sit Ins End Today

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Sheikh Rashid Ahmed in his latest video tweet mentioned that govt and TLP have successfully concluded the third phase of dialogs. It have been decided that govt will bring a resolution on National Assembly today, for the expulsion of French ambassador from Pakistan. Meanwhile TLP will end its all sit ins across the country.

Also later through a notification all the TLP’s arrested workers will be freed and no court cases will be pursued against them for anything done during the recent few days of protests. The tweet through which Sheikh Rashid Ahmed revealed all these details is as follows.

Earlier it was announced by Sheikh Rashid Ahmed that they had started dialog with the TLP and are hopeful that it will conclude with some positive outcome. During same first dialog the TLP had freed 11 policemen which they had hostage with them. Finally it took three full phases of dialog before the both involved parties came to terms with each other.

According to government of Pakistan, they do share the objectives with TLP but don’t want to adopt their approach and want to handle handle things more responsibly. TLP earlier with their sit ins had closed the country on allegedly 192 points which choked the country and movement of citizens was restricted. Same was the main reason for conflict between the TLP and the police. Most conflict happened when police was trying to clear the passages which were blocked by TLP workers.

Earlier During the Sit Ins of TLP

First Dialog with TLP Successful, Says Sheikh Rashid

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Seems like government of Pakistan have decided to give a second chance to TLP and started holding talks with the leadership. In fact as a result of first dialog, 11 Policemen and security forces officials were freed by TLP which they had as hostage with them. This was revealed by Sheikh Rashid Ahmed the interior minister of Pakistan, in a video message via one of his latest tweets. Here is that video message, below.

According to the Sheikh Rashid not only the first session of dialog between Punjab Govt and TLP gone well, but also things are look good for the future. First Session held before very early in the morning before the ‘Sehri’ (as it is Ramadan going on), next session had to happen again within few hours of first.

There is now hope on the end of tunnel that government and TLP will reach some kind of mutual agreement where it is better for both the parties involved. According to Sheikh Rashid, TLP had put blockades on 192 places country wide, on 191 places, these blockades have been removed by use of Power. However, for the last place with is the hub of TLP workers and is a mosque, it is being considered to resolve matters rather peacefully with dialog.