July 18 - July 24, 2005 
ISSUE # 29 

The Consistent policies of the government in the past four years had led to a boom in the auto industry and this important sector attracted a lot of local and foreign investment. Growth in the local auto industry had passed on many benefits to society in the form of increased employment, revenue to the GoP, and savings of foreign exchange. In the new budget, instead of furthering growth of the auto sector, the government has surprisingly come up with policies that will have a very negative impact on the industry. Some industry analyst even fear that the industry could even experience a total collapse owing to these new policies announced in the budget.



The first-ever SME policy, with the consensus of the four provinces, will be announced by the government by the end of this month.
Shahab Khawaja, Chief Executive Officer (CEO), Small and Medium Enterprises Development Authority (SMEDA), told PAGE that draft document had been prepared after extensive consultations with all the stakeholders of the four provinces.
A final workshop would soon be conducted in Islamabad for finalizing the detailed recommendations to be submitted to the federal Cabinet for its approval. He said that Federal Minister for Industries and Special Incentive, Jahangir Tareen, would chair the final workshop.