KARACHI: Prime Minister Raja Pervez Ashraf on Saturday said the government was working on a long-term auto-industry policy to strengthen this important sector.

Addressing a gathering after inaugurating an automobile assembly plant of Al-Haj FAW Motors Company at National Highway in the vicinity of Port Bin Qasim, the premier said that the government was ready to support experimental and innovative vehicles to make these affordable for the common man.

The real success of this industry would be when the prices of vehicles would come down to the affordability of a common man, he added.

He expressed the hope that local auto-industry would come up with such a programme that would be based on price and fuel efficiency.—APP

Our Staff Reporter adds: Talking to journalists after inaugurating the assembling plant, Prime Minister Raja Pervez Ashraf said the country had great potential for economic growth and added that the government keenly desired to facilitate private sector because the country could not prosper until the businessmen made progress.

Welcoming the assembling plant at the time when the automobile industry was passing through difficult time, the prime minister suggested the need to manufacture locally which would not only help in improving the economy and reduce the prices but also help the country compete in international market and increase its exports.

Earlier speaking at the ceremony, Al-Haj FAW Group chairman Haji Shah Gulji Afridi said 3,000 workers were employed in the plant which had the capacity of producing 25,000 vehicles every year.

He highlighted the need for checking import of reconditioned vehicles to give boost to local automobile industry which could earn foreign exchange by exporting vehicles.

Auto analysts believed that in a market dominated by Japanese auto assemblers amid tough challenges, the Chinese company will have to mainly focus on changing people’s mindset about Chinese automobile in Pakistani market by providing quality, durability, after sales support etc.

Under this new joint venture project, Chinese automobile technologies will also be transferred into Pakistan in the next two years.

Analysts recalled that a number of Chinese companies had entered Pakistan but they failed due to poor product selection, product quality, back up support to parts and no proper support from the principal. Analysts said hopefully the Chinese company and their local partners will focus to avoid all these mistakes.